Retrenchment of euro area banks and international banking models
Isabel Argimon (),
Elena Fernández Ortiz and
Maria Rodriguez-Moreno
No 112, ESRB Working Paper Series from European Systemic Risk Board
Abstract:
In this paper, we analyze the importance of international banking models, along the operational and the funding dimensions, for the decline in international positions of European banks since the crisis. Using BIS Consolidated Banking Statistics, we find that the multinational model (higher reliance on local activity) and the decentralized model (higher weight of local funding over local claims) is associated with lower retrenchment. We also find that more business synchronization between the home and the host economy is associated with higher declines in lending after the crisis and that the multinational and decentralized models mitigate such effect. On the other hand, lending to banks is not affected by the correlation of economic cycles between the home and the host country. JEL Classification: F21, F23, G15, G21
Keywords: cross-border bank lending; financial crisis; global banking; retrenchment (search for similar items in EconPapers)
Date: 2020-11
New Economics Papers: this item is included in nep-ban and nep-eec
References: View references in EconPapers View complete reference list from CitEc
Citations:
Downloads: (external link)
https://www.esrb.europa.eu//pub/pdf/wp/esrb.wp112~854beb59ac.en.pdf (application/pdf)
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:srk:srkwps:2020112
Access Statistics for this paper
More papers in ESRB Working Paper Series from European Systemic Risk Board 60640 Frankfurt am Main, Germany. Contact information at EDIRC.
Bibliographic data for series maintained by Official Publications ().