Policy makers often decide to liberalize foreign bank entry but at the same time restrict the mode of entry. We study …

Policy makers often decide to liberalize foreign bank entry but put limitations on the mode of entry. We study how …

Policy makers often decide to liberalize foreign bank entry but at the same time restrict the mode of entry. We study …

Bank regulation differs across countries. We show that these differences provide incentives to lend across the border …. In a theoretical model we derive the foreign bank's credit supply function, showing that in the case of regulatory … differences the closer firms are to the border the more likely a foreign bank is to offer them a loan. This hypothesis is …