International banking and cross-border effects of regulation: lessons from the United States

Jose M. Berrospide, Ricardo Correa, Linda Goldberg and Friederike Niepmann
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Jose M. Berrospide: https://www.federalreserve.gov/econres/jose-m-berrospide.htm

No 793, Staff Reports from Federal Reserve Bank of New York

Abstract: Domestic prudential regulation can have unintended effects across borders and may be less effective in an environment where banks operate globally. Using U.S. micro-banking data for the first quarter of 2000 through the third quarter of 2013, this study shows that some regulatory changes indeed spill over. First, a foreign country?s tightening of limits on loan-to-value ratios and local currency reserve requirements increase lending growth in the United States through the U.S. branches and subsidiaries of foreign banks. Second, a foreign tightening of capital requirements shifts lending by U.S. global banks away from the country where the tightening occurs to the United States and to other countries. Third, tighter U.S. capital regulation reduces lending by large U.S. global banks to foreign residents.

Keywords: spillovers; bank credit; macroprudential policies; international banking (search for similar items in EconPapers)
JEL-codes: F42 F44 G15 G21 (search for similar items in EconPapers)
Pages: 36 pages
Date: 2016-09-01
New Economics Papers: this item is included in nep-ban and nep-ifn
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Citations: View citations in EconPapers (12)

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Related works:
Journal Article: International Banking and Cross-Border Effects of Regulation: Lessons from the United States (2017)
Working Paper: International Banking and Cross-Border Effects of Regulation: Lessons from the United States (2016)
Working Paper: International Banking and Cross-border Effects of Regulation: Lessons from the United States (2016)
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