International Banking and Cross-Border Effects of Regulation: Lessons from the Netherlands
Jon Frost (),
Jakob de Haan () and
Neeltje Van Horen ()
International Journal of Central Banking, 2017, vol. 13, issue 2, 293-313
The large and concentrated international activities of Dutch banks make the Netherlands particularly relevant for assessing the outward transmission of prudential policies. Analysis of the quarterly international claims of twenty-five Dutch banks in sixty-three countries over 2000–13 indicates that Dutch banks increase lending in countries that tighten prudential regulation. This result is driven particularly by larger banks, by banks with higher deposit ratios, by lending to advanced economies, and by lending in the post-crisis period. The result is not significant in most other subsamples. These findings suggest that banks react to changes in local prudential regulation via foreign lending—which could come either from regulatory arbitrage or from signaling effects of prudential policy on country risk. This contributes to the case for the reciprocation of macroprudential policy.
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed
Downloads: (external link)
Working Paper: International Banking and Cross-Border Effects of Regulation: Lessons from the Netherlands (2016)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:ijc:ijcjou:y:2017:q:1:a:11
Access Statistics for this article
International Journal of Central Banking is currently edited by Loretta J. Mester
More articles in International Journal of Central Banking from International Journal of Central Banking
Bibliographic data for series maintained by Bank for International Settlements ().