Area – are also important, sometimes even more so, consistent with the dominant role of European banks in cross … also the cyclical impact of global liquidity, with sensitivities of flows to banks decreasing with stronger macroeconomic …

countries. Current market shares of foreign banks average 20 percent in OECD countries and 50 percent elsewhere. Foreign banks … have higher capital and more liquidity, but lower profitability than domestic banks do. Only in developing countries is … foreign bank presence negatively related with domestic credit creation. During the global crisis foreign banks reduced credit …