The literature on the drivers of capital flows stresses the prominent role of global financial
factors. Recent empirical work, however, highlights how this role varies across countries and
time, and this heterogeneity is not well understood. We revisit this question by focusing on
financial intermediaries' funding flows in different currencies. A concise portfolio model
shows that the sign and magnitude of the response of foreign currency funding flows to global
risk factors depend on the financial intermediary's pre-existing currency exposure. An analysis
of a rich dataset of European banks' aggregate balance sheets lends support to the model
predictions, especially in countries outside the euro area.