international and global banking. International banking, where banks raise capital in the home market and lend it abroad, is driven … by differences in factor endowments across countries. In contrast, global banking, where banks intermediate capital … determine the foreign assets and liabilities of a banking sector. The model provides a rationale for the observed rise in global …

Banking across borders has risen substantially over the past two decades. Yet there is significant heterogeneity in the … variation from an international trade theory perspective. In the model, banking across borders arises from differences in factor … endowments and differences in banking sector efficiencies between countries. The paper shows how these differences determine …