Post-Crisis International Banking: An Analysis with New Regulatory Survey Data

36 Pages Posted: 9 Dec 2016

See all articles by Hibiki Ichiue

Hibiki Ichiue

International Monetary Fund (IMF)

Frederic J. Lambert

International Monetary Fund (IMF)

Date Written: April 2016

Abstract

Foreign bank lending has stopped growing since the global financial crisis. Changes in banks' business models, balance-sheet adjustments, as well as the tightening of banking regulations are potential drivers of this prolonged slowdown. The existing literature however suggests an opposite effect related to regulation, with tighter regulations encouraging foreign lending through regulatory arbitrage. We investigate this question using new survey data on regulations specific to banks' international operations. Our results show that regulatory tightening can explain about half of the decline in the foreign lending-to-GDP ratio between 2007 and 2013. Regulatory changes in home countries have had a larger effect than those in host countries.

Keywords: International banking, Bank regulations, Cross-border banking, Foreign banks, Loans, Globalization, international banking, regulation

JEL Classification: G21, G28, F34

Suggested Citation

Ichiue, Hibiki and Lambert, Frederic J., Post-Crisis International Banking: An Analysis with New Regulatory Survey Data (April 2016). IMF Working Paper No. 16/88. Available at SSRN: https://ssrn.com/abstract=2882652

Hibiki Ichiue (Contact Author)

International Monetary Fund (IMF) ( email )

700 19th Street, N.W.
Washington, DC 20431
United States

Frederic J. Lambert

International Monetary Fund (IMF) ( email )

700 19th Street, N.W.
Washington, DC 20431
United States

Here is the Coronavirus
related research on SSRN

Paper statistics

Downloads
41
Abstract Views
210
PlumX Metrics