Statistics used in international economics generally adopt a residence view, centred on an economy and the units located there. This is natural for understanding the geography of capital flows and other macroeconomic issues. However, the system of national accounts does only the extent of globalisation and the rise of multinational firms and financial intermediaries. Their balance sheets straddle national borders, and their decisions affect many countries in ways that are obscured in residence statistics. This feature uses BIS statistics to show how a nationality view, which groups balance sheets by the country of headquarters, can provide insights on policy-relevant issues such as foreign currency debt, deglobalisation and financial openness.
