Few Large with Many Small: Banks Size Distribution and Cross-Border Financial Linkages

Giorgio Barba Navaretti (), Giacomo Calzolari (), Alberto Pozzolo and Maria Teresa Trentinaglia De Daverio ()
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Giorgio Barba Navaretti: University of Milan, Centro Studi Luca D’Agliano

Journal of Financial Services Research, 2019, vol. 56, issue 3, No 2, 229-258

Abstract: Abstract We estimate the effect of the distribution of banks by asset size on a country’s propensity to engage in cross-border banking. Countries where the distribution of banks by asset size is more skewed to the right (with few large and many small banks) lend more abroad and are recipients of more funds from foreign banks. This is consistent with the fact that large banks, with easier access to the international financial markets, act as a hub for smaller banks and at the same time stand out as safer too-big-to fail counterparts for foreign partners.

Keywords: BIS International banking statistics; Bank size; Gravity equations (search for similar items in EconPapers)
JEL-codes: F32 F36 F65 G21 (search for similar items in EconPapers)
Date: 2019
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Citations: View citations in EconPapers (2)

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DOI: 10.1007/s10693-019-00325-5

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