Post-crisis International Banking: An Analysis with New Regulatory Survey Data

April 8, 2016

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Format: Chicago

Hibiki Ichiue, and Frederic Lambert. Post-crisis International Banking: An Analysis with New Regulatory Survey Data, (USA: International Monetary Fund, 2016) accessed November 21, 2024

Disclaimer: This Working Paper should not be reported as representing the views of the IMF.The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate

Summary

Foreign bank lending has stopped growing since the global financial crisis. Changes in banks’ business models, balance-sheet adjustments, as well as the tightening of banking regulations are potential drivers of this prolonged slowdown. The existing literature however suggests an opposite effect related to regulation, with tighter regulations encouraging foreign lending through regulatory arbitrage. We investigate this question using new survey data on regulations specific to banks’ international operations. Our results show that regulatory tightening can explain about half of the decline in the foreign lending-to-GDP ratio between 2007 and 2013. Regulatory changes in home countries have had a larger effect than those in host countries.

Subject: Bank regulation, Banking, Exchange rates, Financial crises, Financial institutions, Financial regulation and supervision, Foreign banks, Foreign currency exposure, Foreign exchange, Money

Keywords: Bank, Bank activity, Bank capital, Bank regulation, Exchange rate, Exchange rates, Financial statements practice, Foreign banks, Foreign currency exposure, GDP, Global, Incorporated bank, International banking, International operation, Regulation, U.S. dollar, WP

Publication Details

Pages:

35
Volume:

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DOI:

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Issue:

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Series:

Working Paper No. 2016/088
Stock No:

WPIEA2016088
ISBN:

9781475566703
ISSN:

1018-5941

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