Banks' internationalization strategies : the role of bank capital regulation / Diemo Dietrich ; Uwe Vollmer
Loading...
Download349.93 KB
Banks` internationalization strategies
Discovery
521005787
URN
urn:nbn:de:gbv:3:2-1309
DOI
ISBN
ISSN
Koordinaten
Skalierung
Author
dc.contributor.contributor
Other contributor
Publication history
Halle : Inst. für Wirtschaftsforschung, 2006
Content
Online-Ressource(Text, 350 KB)
Edition
Language
eng
Comment
Abstract
This paper studies how capital requirements influence a bank's mode of entry into foreign financial markets. We develop a model of an internationally operating bank that creates and allocates liquidity across countries and argue that the advantage of multinational banking over offering cross-border financial services depends on the benefit and the cost of intimacy with local markets. The benefit is that it allows to create more liquidity. The cost is that it causes inefficiencies in internal capital markets, on which a multinational bank relies to allocate liquidity across countries. Capital requirements affect this trade-off by influencing the degree of inefficiency in internal capital markets.
Series
IWH-Diskussionspapiere ; 2006,18 ppn:37244492X