Cross-border banking claims on emerging countries: The Basel III Banking Reforms in a push and pull framework

Jean-Marc Figuet, Thomas Humblot and Delphine Lahet

Journal of International Financial Markets, Institutions and Money, 2015, vol. 34, issue C, 294-310

Abstract: This paper outlines a framework for mapping the effects of Basel III increases in capital and liquidity requirements on cross-border bank lending to emerging market economies. In a traditional push and pull scheme, the effects of capital and liquidity ratios are disentangled through 6 specific push factors. Performing a GMM over the 1999–2010 period, we provide an assessment of the potential impact of each new regulatory standard on claims held by international banks from 16 advanced economies on 30 emerging countries. We provide evidence that the new regulation could result in an overall decrease of 20% in cross-border claim inflows.

Keywords: Basel III; Cross-border bank lending; Capital flows; Emerging market economies; Push and pull factors (search for similar items in EconPapers)
JEL-codes: E51 F34 G18 (search for similar items in EconPapers)
Date: 2015
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Citations: View citations in EconPapers (4)

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Working Paper: Cross-border banking claims on emerging countries: The Basel III Banking Reforms in a push and pull framework (2015)
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Persistent link: https://EconPapers.repec.org/RePEc:eee:intfin:v:34:y:2015:i:c:p:294-310

DOI: 10.1016/j.intfin.2014.11.016

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