Information or Regulation: What Is Driving the International Activities of Commercial Banks?

Claudia Buch

No 1011, Kiel Working Papers from Kiel Institute for the World Economy (IfW Kiel)

Abstract: Information costs and regulatory barriers are the main distinguishing features of international financial markets as compared to national financial markets. This paper presents a simple model of the impact of these factors on banks' cross-border activities and provides empirical evidence. Our dataset allows us to capture both the times-series and the cross-section dimension of information costs and changes in regulations, in particular, for intra-EU asset holdings. While EU membership per se seems to have had a negative impact on cross-border banking activities, the adoption of the Single Market clearly had a positive impact. While regulations and information costs are important for all reporting countries, their relative importance differs between countries.

Keywords: cross-border banking; information costs; panel cointegration (search for similar items in EconPapers)
JEL-codes: F21 G21 (search for similar items in EconPapers)
Date: 2000
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (21)

Downloads: (external link)
https://www.econstor.eu/bitstream/10419/17710/1/kap1011.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:zbw:ifwkwp:1011

Access Statistics for this paper

More papers in Kiel Working Papers from Kiel Institute for the World Economy (IfW Kiel) Contact information at EDIRC.
Bibliographic data for series maintained by ZBW - Leibniz Information Centre for Economics ().