Spatial Dependence via the Internal Capital Markets of U.S. Global Banks

Carmela d'Avino and Mimoza Shabani
Additional contact information
Carmela d'Avino: ESC [Rennes] - ESC Rennes School of Business
Mimoza Shabani: UEL - University of East London

Post-Print from HAL

Abstract: Abstract In this paper, we estimate the cross‐border liquidity network created by U.S. global banks via their internal capital markets to capture the spatial dependence or bilateral proximity between branches located in different countries. Results from dynamic spatial panel regressions indicate that the foreign branches in nearby countries show common lending patterns. A 1% increase in lending in branches in proximate locations is associated with an estimated increase of 0.25% in local lending. Further interdependencies are evidenced by the positive liquidity and monetary policy spillovers on local lending, with marginal spatial effects estimated to be around 1.11% and 0.14%, respectively.

Keywords: Internal capital market; Spatial dependence; Global banks; United states of America (search for similar items in EconPapers)
Date: 2023-10-18
References: Add references at CitEc
Citations:

Published in Journal of Money, Credit and Banking, 2023, 57 (1), pp.69-105. ⟨10.1111/jmcb.13101⟩

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:hal:journl:hal-04942412

DOI: 10.1111/jmcb.13101

Access Statistics for this paper

More papers in Post-Print from HAL
Bibliographic data for series maintained by CCSD ().