Heterogeneous Bank Regulatory Standards and the Cross-Border Supply of Financial Services
36 Pages Posted: 17 Nov 2012 Last revised: 28 Jan 2014
Date Written: June 2013
This paper investigates whether the differences in bank regulatory standards matter for the cross-border supply of financial services. A gravity model of the bilateral exports of financial services is implemented to assess the impact of various factors that measure cross-country differences in the bank regulatory standards. The results show that cross-country heterogeneity in private monitoring impedes the export of financial services. However, this effect remains limited compared to the effect of direct trade barriers.
Keywords: financial services, banking regulation
JEL Classification: G21, F40, F13
Suggested Citation: Suggested Citation