Changing Business Models in International Bank Funding
31 Pages Posted: 2 Nov 2017
Date Written: October 31, 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 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
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