 Bank business models as a driver of cross-border activitiesMary Everett (), Peter McQuade and O’Grady, Michael Journal of International Money and Finance, 2020, vol. 108, issue C Abstract: Much of the post-crisis moderation in international banking has been shown to be attributable to euro area banks. Using a confidential bank-level dataset on euro area resident banks, this paper sheds light on the type of banks responsible for the decline in cross-border lending. Overall, globally systemically important banks (G-SIBs) were markedly different from other bank types resident in the euro area, as they not only increased their extra-euro area positions, but also contributed to maintaining cross-border flows within the euro area over the past decade. In addition, we also highlight that banks with initially higher capitalisation, more deposit funding and lower non-performing loan rates exhibit less cross-border retrenchment. These findings have clear policy implications for the design of bank regulations appropriate for a deepening European Banking Union. Keywords: Financial globalisation; Cross-border banking; European Monetary Union; Banks; Bank regulation (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:eee:jimfin:v:108:y:2020:i:c:s0261560620300954 DOI: 10.1016/j.jimonfin.2020.102164 Access Statistics for this article Journal of International Money and Finance is currently edited by J. R. Lothian More articles in Journal of International Money and Finance from Elsevier |
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