Cross-Border Retail Banking: Exploring the Unknown Financial Globalization in Times of Financial Crises

The surge in cross-border banking prior to the 2007 / 08 global financial crisis took place not only in the interbank market but also in the retail market, e.g. between banks and their private customers abroad. Cross-border retail activities of banks now account for a substantial share of total international activities. Despite its rising importance, we are just starting to understand the role of cross-border retail banking for globalization and stability. In this study, we assess this less known part of financial globalization by reviewing the development and structure of cross-border banking, identifying the factors that drive retail customers across borders and assessing the impact of financial crises on global retail banking. (F3, F15, F65, G01, G15, G21)