This paper highlights the growing significance of global bank ‘branches’ in the context of financial stability and analyzes the potential risks each local economy may face. Motivated by empirical evidence from a panel of primarily European economies for 2015-2020, I propose a small open...

This paper builds a dataset on bank ownership that covers more than 6,500 banks in 181 countries (59 low-income economies, 72 middle-income economies, and 50 high-income economies) over 1995-2020. I show that until 2010, there was a reduction in state-ownership of banks and an increase foreign...

Banking sector openness may directly increase growth by improving the quality of financial services and increasing funds available, or indirectly by improving the efficiency of financial intermediaries, both of which may reduce the cost of financing, in turn, increase capital accumulation and...

This paper studies the impact of monetary policy on the credit allocation of globally operating banks. First, we document that, at the country level, banks’ bias toward domestic lending fell in the early 2000s but increased by 10% during the low interest rate period after the Global Financial...

Using confidential daily foreign exchange interventions (FXI) data, we analyse the FXI episode of the Bank of Israel (BOI) from 2013 to 2019. We find that a purchase of US dollar (USD) 1 billion is on average associated with a depreciation of the Israeli new shekel (ILS) by 0.82%-0.83%, which is...

We show that an expansive foreign monetary policy, where global banks are headquartered, increases the borrowing activity of their subsidiaries in local money markets in the countries of residence. We use a unique dataset of the Mexican money market. We report evidence that a limited flexibility...

Global liquidity refers to the volumes of financial flows—largely intermediated through global banks and non-bank financial institutions—that can move at relatively high frequencies across borders. The amplitude of responses to global conditions like risk sentiment, discussed in the context...

This investigation starts with the observation that, over the last decade, profitability rates reported by euro area (EA) banks have remained, on average, persistently below those reported by peer banks in the United States (US). In particular, banks' return on equity (ROE) has fluctuated around...

Decentralized finance (DeFi) has emerged as a credible challenger in the financial industry's current norms. It employs cutting-edge solutions to decentralize banking and industry concepts and provide financial services to anybody, everywhere. It also intends to improve financial inclusion by...

Under Basel III, the current international banking regulation, banks must maintain two Tier 1 capital ratios that treat risky assets differently. The Basel Committee uses the critical average risk weight (CARW) framework developed by the Bank of England to determine which ratio is the binding...

The state council initiated the Regulations on the Administration of Foreign Banks (Reg AFB) in 2015, which significantly lifted the barriers of foreign banks’ operation in RMB business. Employing two-way fixed effect model, we find Reg AFB led to significant decrease in firms’ cost...

The Credit Suisse crisis in 2023 generated important variations in the stock market, and a lot of discussions about the potential contagion effects with other systemic banks. We use the Extended Joint Connectedness measure based on Diebold and Yilmaz (2008, 2012) approach to study this effect....

This paper investigates the effects of foreign ownership on bank liquidity creation. Using a manually collected novel dataset that includes both listed and unlisted commercial banks in China during the period between 2006 and 2018, we find that foreign ownership is significantly related to lower...

We review the "climate action plans" of Global Systemically Important Banks (GSIBs) and the progress they are making toward achieving them. G-SIBs have identified the drivers of climate risk and their transmission channels to credit and other risks. Additionally, some have started to measure and...

This Study examines the impact of local bank structures on the expansion of foreign banks by combining data from China and theory analysis of domestic and foreign bank competition. Results show that when foreign banks face banking structures with a higher proportion of banks with low funding...

This paper explores how foreign bank penetration impacts the Vietnamese banking sector. By utilizing the comprehensive dataset of the Vietnamese banking system during the period from 2005 to 2020, this study provides robust evidence on the impacts of foreign bank penetration on competition and...

In 2011, the largest banks were designated as Global Systemically Important Banks (GSIBs) by the Financial Stability Board. While these banks face closer supervision and additional constraints, they also benefit from an implicit guarantee from their governments. The changed environment for these...

Purpose – The reason for this examination is to check the feasibility of anti-money laundering (AML) regulation implementation in foreign and local banks in Pakistan. Money laundering is most prevalent in the banking sector, as banks deal with the money’s deposition, withdrawal, and funds...

Beggar-thy-neighbour in macroprudential policy? To answer this question, we exploit a confidential dataset, including a large set of banking groups operating in the euro area and abroad, which are subject to additional capital buffers (OSII buffers). This paper studies the impact of...

This paper examines the effect of foreign bank entry on local firms’ social performance. We find that foreign bank entry is associated with better performance of local firms in regard to corporate social responsibility (CSR). The effect is more pronounced when firms face less favorable...

This paper analyses and investigates the effect of cryptocurrencies growing on the capital stock prices (value relevance), and the financial performance of the international banking sector for the purpose of answering the paper’s major question regarding whether the effect of cryptocurrencies...

This paper explores whether foreign banks stabilise or destabilise lending to the real economy in the presence of sovereign stress in the domestic economy and abroad. In this context, the presence of foreign intermediaries poses a fundamental, yet unexplored, trade-off. On the one hand, domestic...

This study examines the heterogeneity of foreign banks in the income diversification and performance nexus. We utilize annual bank data across 46 countries in Sub-Saharan Africa over the period 2011-2018 and find that increased income diversification improves banks performance, and the Global...