Leading up to the global financial crisis, US dollar activity by global banks headquartered outside the United States played a crucial role in transmitting shocks originating in funding markets. Although post-crisis regulation has improved banking systems' resilience, US dollar funding remains a...

I study the prevalence and profitability of regulatory arbitrage in U.S. banks foreign activities. I analyze a publicly available bank-level dataset on bilateral lending flows to 75 countries over 2003-2013. U.S. banks lend less to borrowers in host countries with stricter bank regulations, and...