International Banking and Cross-Border Effects of Regulation: Lessons from the United Kingdom

Robert Hills, Dennis Reinhardt, Rhiannon Sowerbutts and Tomasz Wieladek

International Journal of Central Banking, 2017, vol. 13, issue 2, 404-433

Abstract: This paper examines whether U.K.-owned banks’ domestic lending is affected by prudential actions in other countries where the banks have exposures. We also examine the impact of a change in prudential policy in a foreign-owned U.K.- resident bank’s home jurisdiction on its lending to the United Kingdom. Our results suggest that prudential actions taken abroad do not have significant spillover effects on bank lending in the U.K. economy as a whole. But there are more disaggregated sectoral effects: for instance, when a foreign authority tightens loan-to-value standards, U.K. affiliates of banks owned from that country expand their lending to U.K. households.

Date: 2017
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (15)

Downloads: (external link)
http://www.ijcb.org/journal/ijcb17q1a15.pdf (application/pdf)
http://www.ijcb.org/journal/ijcb17q1a15.htm (text/html)

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:ijc:ijcjou:y:2017:q:1:a:15

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 ().