Changing Business Models in International Bank Funding
31 Pages Posted: 2 Nov 2017
There are 4 versions of this paper
Changing Business Models in International Bank Funding
Changing Business Models in International Bank Funding
Changing Business Models in International Bank Funding
Changing Business Models in International Bank Funding
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