We exploit proprietary information on severed correspondent banking relationships (due to the stricter enforcement of financial crime regulation) to assess how payment disruptions impede cross-border trade. Using firm-level export data from emerging Europe, we show that when local respondent...

Das Institut für Mittelstandsforschung (IfM) Bonn hat in Kooperation mit dem Volkswirtschaftlichen Institut für Mittelstand und Handwerk an der Universität Göttingen (ifh) im Auftrag des Bundesministeriums für Wirtschaft und Technologie (BMWi) eine Studie zu den Auslandsaktivitäten...

Banking across borders has risen substantially over the past two decades. Yet there is significant heterogeneity in the international and global activities of banks across countries. This paper develops and tests a theoretical model that explains this variation from an international trade theory...