We model the interaction between two economies where banks exhibit both adverse selection and moral hazard and bank … policy regimes. We extend the model to allow for multinational banks, licensed by both regulators, showing that the same … negative impact on local banks. …

This paper argues that the European banking crisis can in part be explained by a “carry trade” behavior of banks …) and German government bond returns suggest that banks have been long peripheral sovereign bonds funded in short … significant losses on banks. We show that the positive GIPSI factor loadings reflect actual portfolio holdings of GIPSI bonds in …

A bank’s interest expenses are found to increase with its degree of internationalization as proxied by its share of … bank is performing badly. Our benchmark estimation suggests that an international bank’s cost of funds raised through a …