U.S. banks are increasingly outsourcing an expanding range of their operations to third-party service providers. Recent industry estimates show that outsourcing by U.S. banks accounts for almost 20 percent of their information technology services spending Importantly, the prospect of...

The market share of foreign-owned banks (subsidiaries, branches, and agencies) in the United States grew dramatically during the 1980s and early 1990s, amid fears that foreign banks were out-competing U.S.-owned banks in their home market. However, more recent data show that growth of the market...

1) D.T. Llewellyn, " The future for small & regional banks in Europe" 2) R. Ortner, " What future for regional banks?" 3) H. Stepic, " The Strategy of RZB in Central and Eastern Europe" 4) St. K. Zapotocky, " The challenges and chances of regional exchanges" It has been argued that the...

We analyze how a wealth shift to emerging countries may lead to instability in developed countries. Investors exposed to expropriation risk are willing to pay a safety premium to invest in countries with good property rights. Domestic intermediaries compete for such cheap funding by carving out...

Why do large European banks lobby for monetary union? We show in a game-theoretic model that monetary union can trigger a change in the structure of the market for international banking transactions with asymmetric effects on profits: large banks are induced to cooperate internationally and gain...

This paper analyzes banking crises using a quantitative model with equilibrium default for both firms and banks. The main results are: 1) small open economies have larger banking crises than closed or large economies. Constant international rates do not mitigate interbank spreads and amplify...

Banks' international strategy and the way in which they have expanded are explanatory factors for the economic effects of their activity. Based on information from individual institutions, the internationalisation strategies of banks based in Spain, the Netherlands and the United States have...

This paper assesses the role of bank and nonbank financial institutions' balance sheet foreign exposures and risk management practices in driving capital flow responses to global risk. Using a unique and previously unexplored dataset on domestic and cross border balance sheet positions of...

The central issues addressed are the extent and causes of interdependency between Japanese banks' domestic and US lending. We examine hypotheses that domestic and US credit allocations by Japanese banks during the late 1980s and early 1990s are related through their mutual dependence on capital...