Changing Business Models in International Bank Funding

18 Pages Posted: 27 Feb 2019

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

Stefano Schiaffi

Bank of Italy

Multiple version iconThere are 4 versions of this paper

Date Written: April 2019

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 postbreak 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 interoffice accounts within the same banking group.

JEL Classification: C32, F65, G21

Suggested Citation

Gambacorta, Leonardo and Rixtel, Adrian Van and Schiaffi, Stefano, Changing Business Models in International Bank Funding (April 2019). Economic Inquiry, Vol. 57, Issue 2, pp. 1038-1055, 2019. Available at SSRN: https://ssrn.com/abstract=3342647 or http://dx.doi.org/10.1111/ecin.12738

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

Adrian Van Rixtel

Banco de España - Department of International Economics & International Relations ( email )

Alcala 50
Madrid, 28014
Spain

Stefano Schiaffi

Bank of Italy ( email )

Via Nazionale 91
Rome, 00184
Italy

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