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We study how changes in prudential requirements affect cross-border lending of Canadian banks by utilizing an index that aggregates adjustments in key regulatory instruments across jurisdictions. We show that when a destination country tightens local prudential measures, Canadian banks lend more...
Persistent link: https://www.econbiz.de/10011517068
We document that non-US global banks are increasingly heterogeneous in their dollar banking activities and dollar demand. We study the implications for dollar funding markets using data on security-level money market fund holdings. We find that funds charge higher prices to banks with weaker...
Persistent link: https://www.econbiz.de/10012888947
-based informal co- and self-regulation through domestic (gentlemen's) agreements underpinned West German bank internationalisation …Current theories of financial regulation suggest expanding rules-based formal state intervention to promote … regulation, drawing on unused primary sources: Coalitions between the German regulating and regulated actors were bolstered by a …
Persistent link: https://www.econbiz.de/10014436557
liquidity regulation will have distinctly different effects on the international organisation of banks. Liquidity regulation …
Persistent link: https://www.econbiz.de/10013081465
Foreign bank lending has stopped growing since the global financial crisis. Changes in banks' business models, balance … literature however suggests an opposite effect related to regulation, with tighter regulations encouraging foreign lending …
Persistent link: https://www.econbiz.de/10012977751
Our research as well as that by other authors has found scale economies at all sizes of banks and the largest scale economies at the largest banks – that is, larger banks are able to provide products at lower average cost than smaller banks. While the earlier literature found that scale...
Persistent link: https://www.econbiz.de/10011416928
We analyze whether four market-based measures of the global systemic importance of financial institutions offer early warning signals during three financial crises. The tests based on the 2007/2008 crisis show that only one measure (∆CoVaR) consistently adds predictive power to conventional...
Persistent link: https://www.econbiz.de/10013035234
regulation by the Fed as standalone entities. Banks, central bankers, and national regulators from around the world have … or mitigate “Too Big to Fail” — the situation in which a bank becomes so large that a government bailout is virtually …
Persistent link: https://www.econbiz.de/10013014867
The financial crisis has led to a reconsideration of banks' global business models. This special feature uses the BIS banking statistics to distinguish between “international” and “multinational” banks and their associated funding models. The crisis put these models to the test. In the...
Persistent link: https://www.econbiz.de/10013095072
stringent bank regulation and supervision consistent with regulatory arbitrage, but that they prefer to originate loans in …-border syndicated loan market. Lending provided through a foreign subsidiary is subject to subsidiary-country regulation and … institutional arrangements. Multinational banks' choices between loan origination through the parent bank or through a foreign …
Persistent link: https://www.econbiz.de/10012861555