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Daniela Gabor is Associate Professor at Bristol Business School.

Abstract:

This paper argues that financialization is not a phenomenon exclusively associated with highly complex financial markets. It also affects countries with 'shallow' financial markets but with a significant presence of transnational financial actors that become a powerful economic and political force. This dependent financialization is characterised by new modes of profit generation for transnational banks, interconnectedness and fragility as the main mechanisms of incorporation in global financial structures. Trading-based, shadow-banking funded bank activities connect and financialize local currency, money and asset markets, both quantitatively (rapid growth, increasingly liquid) and qualitatively (structural changes in demand/supply conditions). In Eastern Europe, recent attempts to impose (informal) capital controls and segment banks' internal capital markets, as in the Vienna Initiatives, should be viewed as attempts to re-embed domestic financial systems.

Info:

Daniela Gabor is Associate Professor at Bristol Business School. Her research is concentrated in three related areas. First, she is interested in shadow banking activities, in particular collateral intermediation, and the implications for central banking, sovereign bond markets and regulatory activity. Second, her research develops the theme of transnational banks' involvement in policy deliberations around capital controls and crisis management in both global settings and in emerging markets. Finally, she researches the IMF's conditionality and advice on capital controls. Her recent publications include papers in Review of Political Economy, Journal of Development Studies, Comparative Economic Studies and others.

• For more details contact: Dr Svetlana Makarova

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