Changing Business Models in International Bank Funding
32 Pages Posted: 20 Mar 2017
Date Written: March 2017
This paper investigates the foreign funding mix of globally active banks. Using BIS international banking statistics for a panel of 12 advanced economies, we detect a structural break in international bank funding at the onset of the global financial crisis. In their post-break business model, banks rely less on cross-border liabilities and, instead, tap funds from outside their jurisdictions by making more active use of their subsidiaries and branches, as well as inter-office accounts within the same banking group.
Keywords: bank funding, structural reform initiatives, international banks
JEL Classification: C32, F65, G21
Suggested Citation: Suggested Citation