Bank internationalization since 1995

Jonathan Batten and Peter Szilagyi

Journal of Financial Transformation, 2012, vol. 35, 91-105

Abstract: We provide a perspective on international bank lending and borrowing since 1995. We highlight the international banking flows associated with specific countries and regions and how they have been affected by the Global Financial Crisis (GFC). There are a number of key findings. First, while the U.S. is the largest net receiver of international bank funding, others include France, Italy and Spain. Second, we find there were significant reductions in net international exposures after the onset of the GFC and some evidence of the recent reallocation of risky assets to developing regions to diversify, or reduce asset concentration elsewhere. There is also an important role played by international financial centers (notably the Cayman Islands). Overall, the data highlights the dynamic nature of these balances and the importance of international banking flows in supporting the capital account positions of nations, especially during periods of crisis. In addition, our findings provide support for those theories of bank internationalization linked to the role that banks play in supporting customer transactions in international markets.

Keywords: bank internationalization; international bank funding; international financial center; international banking flows (search for similar items in EconPapers)
JEL-codes: G21 (search for similar items in EconPapers)
Date: 2012
References: Add references at CitEc
Citations:

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:ris:jofitr:1531

Access Statistics for this article

Journal of Financial Transformation is currently edited by Prof. Shahin Shojai

More articles in Journal of Financial Transformation from Capco Institute 77 Water Street, 10th Floor, New York NY 10005.
Bibliographic data for series maintained by Prof. Shahin Shojai ( this e-mail address is bad, please contact ).