An evolution of global and regional banking networks: A focus on Japanese banks’ international expansion

Michael Harrison, Jouchi Nakajima and Mimoza Shabani

No HIAS-E-120, Discussion paper series from Hitotsubashi Institute for Advanced Study, Hitotsubashi University

Abstract: This paper examines the possible spillover effects of the global and regional crossborder claims of Japanese banks on domestic financial stability. We contribute to the existing literature by constructing a global banking network and applying the Spinglass methodology to detect communities formed within the network. Furthermore, we employ a novel spatial econometric approach, namely, a timevarying spatial autoregressive (SAR) model that captures the evolution of spillover effects over time. Our empirical results point to the dominant role of Japanese banks in the global banking network and the evolution of the East Asian regional banking network. Furthermore, our findings show considerable variation in the degree of influence of both the global and regional banking networks over time.

Keywords: banking networks; spillover effect; spatial autoregression (search for similar items in EconPapers)
JEL-codes: C23 F34 G21 R11 (search for similar items in EconPapers)
Pages: 37 pages
Date: 2022-04
New Economics Papers: this item is included in nep-ban, nep-mon, nep-net, nep-ore and nep-ure
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https://hermes-ir.lib.hit-u.ac.jp/hermes/ir/re/73523/070_hiasDP-E-120.pdf

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Journal Article: An evolution of global and regional banking networks: A focus on Japanese banks’ international expansion (2023)
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Persistent link: https://EconPapers.repec.org/RePEc:hit:hiasdp:hias-e-120

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