Changing Business Models in International Bank Funding

33 Pages Posted: 25 Apr 2017

See all articles by Leonardo Gambacorta

Leonardo Gambacorta

Bank for International Settlements (BIS); Centre for Economic Policy Research (CEPR)

Stefano Schiaffi

Bank of Italy

Adrian Van Rixtel

Banco de España - Department of International Economics & International Relations

Multiple version iconThere are 4 versions of this paper

Date Written: April 2017

Abstract

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, International Banks, structural reform initiatives

JEL Classification: C32, F65, G21

Suggested Citation

Gambacorta, Leonardo and Schiaffi, Stefano and Rixtel, Adrian Van, Changing Business Models in International Bank Funding (April 2017). CEPR Discussion Paper No. DP11957. Available at SSRN: https://ssrn.com/abstract=2957502

Leonardo Gambacorta (Contact Author)

Bank for International Settlements (BIS) ( email )

Centralbahnplatz 2
Basel, Basel-Stadt 4002
Switzerland

Centre for Economic Policy Research (CEPR)

London
United Kingdom

Stefano Schiaffi

Bank of Italy ( email )

Via Nazionale 91
Rome, 00184
Italy

Adrian Van Rixtel

Banco de España - Department of International Economics & International Relations ( email )

Alcala 50
Madrid, 28014
Spain

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