Abstract

This study improves upon global flow of funds (GFF) statistics to measure global financial stability at the national and cross-border sectoral levels. After investigating the data sources and rebuilding the statistical framework to establish the GFF statistical matrix of G20 countries, we evaluate their financial risks and influences. We then connect the GFF matrix with the sectoral account data and the flow of funds to establish the sectoral from-whom-to-whom financial stock matrix (FFSM). The FFSM focuses on counterparty national and cross-border exposures of the sectors in China, Japan, and the United States to construct country-specific financial networks and connect each country-level network based on cross-border exposures. The analytical results systematically show the financial relationships among G20 countries in the GFF, the characteristics of overseas investment among China and the United States, and external shocks and internal influences.