Changing Business Models in International Bank Funding

Gambacorta, Leonardo; Schiaffi, Stefano; Rixtel, Adrian Van

doi:10.2139/ssrn.3062748

Changing Business Models in International Bank Funding

Banco de Espana Working Paper No. 1736

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)

Adrian Van Rixtel

Banco de España - Department of International Economics & International Relations

There 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: 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