Banks Defy Gravity

43 Pages Posted: 5 Jun 2018 Last revised: 28 Jun 2018

See all articles by Anne-Laure Delatte

Anne-Laure Delatte

CNRS

Vincent Bouvatier

University Paris-Est Créteil (UPEC) - ERUDITE

Gunther Capelle-Blancard

Université Paris I Panthéon-Sorbonne - Centre d'Economie de la Sorbonne (CES); PSB Paris School of Business

Date Written: June 18, 2018

Abstract

This paper provides the first quantitative assessment of the contribution of global banks in intermediating tax evasion. Applying gravity equations on a unique regulatory dataset based on comprehensive individual country-by-country reporting from all the Systemically Important Institutions in the European Union, we find that: 1) Tax havens generate an 200% extra presence of foreign banks; 2) The favorite destinations of tax evasion intermediated by European banks are Luxembourg and Monaco 3) British and German banks display the most aggressive stratégies in tax havens ; 4) New transparency requirements imposed in 2015 have not changed European banks commercial presence in tax havens; 5) Banks intermediate Eur 550 billion of off-shore assets, that is 5% of their origin countries' GDP;

Keywords: tax haven, international banking

JEL Classification: F34, F23, G21, H22, H32

Suggested Citation

Delatte, Anne-Laure and Bouvatier, Vincent and Capelle-Blancard, Gunther, Banks Defy Gravity (June 18, 2018). Paris December 2018 Finance Meeting EUROFIDAI - AFFI. Available at SSRN: https://ssrn.com/abstract=3190602 or http://dx.doi.org/10.2139/ssrn.3190602

Vincent Bouvatier

University Paris-Est Créteil (UPEC) - ERUDITE ( email )

Mail des Mèches
61 avenue du Général de Gaulle
Créteil Cedex, 94010
France

Gunther Capelle-Blancard

Université Paris I Panthéon-Sorbonne - Centre d'Economie de la Sorbonne (CES) ( email )

106-112 Boulevard de l'hopital
106-112 Boulevard de l'Hôpital
Paris Cedex 13, 75647
France

PSB Paris School of Business ( email )

59 rue Nationale
Paris, 75013
France

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