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The international investment working paper seriesincluding policies and trends and the broader implications of multinational enterpriseis designed to make available to a wide readership selected studies undertaken under the aegis of the OECD Investment Committee, by OECD staff, or by outside consultants working on OECD Investment Committee projects. The papers are generally available only in their original language English or French with a summary in the other if available. OECD WORKING PAPERS ON INTERNATIONAL INVESTMENT are published on www.oecd.org/investment/working-papers.htm.This document and any map included herein are without prejudice to the status of or sovereignty over any territory, to the delimitation of international frontiers and boundaries and to the name of any territory, city or area. This paper analyses the impact of a specific type of banking regulation on operations in foreign currency, defined as currency-based capital flow management measures (CB-CFMs), on cross-border banking flows in a sample of 18 countries over the period 2005 to 2013. The results show that the introduction and tightening of these measures in the post-crisis period contributed to a reduction of the external debt of banks, controlling for capital flow management measures, domestic macro-prudential regulation, and a large set of push and pull factors. The examination of external debt by maturity and instruments suggests that these measures are more effective in curbing short-term debt and interbank borrowing, which are also the components that contracted more sharply in the aftermath of the 2008 crisis. Further analysis could look at the benefits these measures bring in terms of financial stability, and evaluate the costs of capital account openness against the risks that CB-CFMs aim to address.

This document and any map included herein are without prejudice to the status of or sovereignty over any territory, to the delimitation of international frontiers and boundaries and to the name of any territory, city or area.

OECD Working Papers on International InvestmentOECD Working Papers should not be reported as representing the official views of the OECD or of its member countries. The opinions expressed and arguments employed are those of the authors. Working Papers describe preliminary results or research in progress by the author(s) and are published to stimulate discussion on a broad range of issues on which the OECD works.The international investment working paper seriesincluding policies and trends and the broader implications of multinational enterpriseis designed to make available to a wide readership selected studies undertaken under the aegis of the OECD Investment Committee, by OECD staff, or by outside consultants working on OECD Investment Committee projects. Comments on Working Papers are welcomed, and may be sent to