Changing Business Models in International Bank Funding

31 Pages Posted: 2 Nov 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: October 31, 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 great 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, global banking, cointegration analysis

JEL Classification: C32, F65, G21

Suggested Citation

Gambacorta, Leonardo and Schiaffi, Stefano and Rixtel, Adrian Van, Changing Business Models in International Bank Funding (October 31, 2017). Banco de Espana Working Paper No. 1736. Available at SSRN: https://ssrn.com/abstract=3062748 or http://dx.doi.org/10.2139/ssrn.3062748

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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