This paper studies how capital requirements influence a bank's mode of entry into foreign financial markets. We develop … a model of an internationally operating bank that creates and allocates liquidity across countries and argue that the … internal capital markets, on which a multinational bank relies to allocate liquidity across countries. Capital requirements …

International financial linkages, particularly through global bank flows, generate important questions about the …. Empirical tests of the trilemma support this view that global bank effects are heterogeneous and that the primary drivers of …

inefficiencies, as the various distortions can offset each other. Empirical analysis using bank-level data from the recent crisis …