International Banking and Cross-Border Effects of Regulation: Lessons from Canada
Evren Damar and
Adi Mordel
Additional contact information
Adi Mordel: Bank of Canada
International Journal of Central Banking, 2017, vol. 13, issue 2, 35-64
Abstract:
We study how changes in prudential requirements affect cross-border lending of Canadian banks by utilizing an index that aggregates adjustments in key regulatory instruments across jurisdictions. We show that when a destination country tightens local prudential measures, Canadian banks increase the growth rate of lending to that jurisdiction, and the effect is particularly significant when capital requirements are tightened and weaker if banks lend mainly via affiliates. Our evidence also suggests that Canadian banks adjust foreign lending in response to domestic regulatory changes. The results confirm the presence of heterogeneous spillover effects of foreign prudential requirements.
Date: 2017
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (14)
Downloads: (external link)
http://www.ijcb.org/journal/ijcb17q1a2.pdf (application/pdf)
http://www.ijcb.org/journal/ijcb17q1a2.htm (text/html)
Related works:
Working Paper: International Banking and Cross-Border Effects of Regulation: Lessons from Canada (2016) 
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:2
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 ().