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maturities with the risk of systemic crises. Pecuniary externalities make unregulated debt maturities inefficiently short. The …
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advantage of their higher risk-bearing capacity to gain exposure (via central bank liquidity) to the set of riskier sovereign … risk-weighted capital framework of banks. …
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terms of higher exposure to interest rate risk and lower net interest margin. …
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In this paper, we analyze the importance of international banking models, along the operational and the funding dimensions, for the decline in international positions of European banks since the crisis. Using BIS Consolidated Banking Statistics, we find that the multinational model (higher...
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