Fecht, Falko; Grüner, Hans Peter; Hartmann, Philipp - In: Journal of International Economics 88 (2012) 1, pp. 150-161
This paper studies the implications of cross-border financial integration for financial stability when banks' loan portfolios adjust endogenously. Banks can be subject to sectoral and aggregate domestic shocks. After integration they can share these risks in a complete interbank market. When...