The Central Bank of Kenya (CBK) has implemented a requirement that all banks need to build their core capital to KES 1 billion (USD 12 million) by December 2012 up from KES 250 million (USD 4 million) in 2008. The argument from the CBK's perspective is that increased capital base is important...

This paper examines the association between the default risk of foreign bank subsidiaries and their parents during the global financial crisis, with the purpose of understanding what factors can help insulate affiliates from their parents. The paper finds evidence of a significant positive...

This paper analyses the nature of the increasing regionalization process in global banking. Despite the large decline in aggregate cross-border banking lending volumes, some parts of the global banking network are currently more interlinked regionally than before the Global Financial Crisis....

We analyze the joint impact of macroprudential and capital control measures on cross-border banking flows, while controlling for multidimensional aspects in lender-and-borrower-relationships(e.g., distance, cultural proximity, microprudential regulations). We uncover interesting spillover...

This special feature explores the role of banks from emerging market economies (EMEs) in global banking. Over the past decade, the cross-border activity of EME banks has been growing at a faster pace than that of banks from advanced economies. This has been largely driven by increasing...

Post-crisis dynamics show a shrinkage in the overall amount of crossborder bank lending,which has been interpreted in the literature as a retreat in financial globalization. In this paper, we argue that aggregate figures are not sufficient to support such a claim in terms ofthe overall structure...