The Mix of International Banks’ Foreign Claims : Determinants and Implications
The authors analyze the determinants and implications for financial stability of the mix of international banks' claims countries receive. In particular, they distinguish between local claims, extended by international banks through their affiliates in a host (or claim recipient) country, and c...
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| Format: | Policy Research Working Paper |
| Language: | English |
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World Bank, Washington, DC
2012
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| Online Access: | http://documents.worldbank.org/curated/en/2005/10/6350149/mix-international-banks-foreign-claims-determinants-implications http://hdl.handle.net/10986/8475 |
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okr-10986-84752021-04-23T14:02:43Z The Mix of International Banks’ Foreign Claims : Determinants and Implications Herrero, Alicia García Martínez Pería, Maria Soledad AFFILIATE AFFILIATES AGENTS APPLICATIONS BALANCE OF PAYMENTS BANK CAPITAL BANK OF SPAIN BANK PROFITS BANKING CRISIS BANKING SECTOR BORROWING CAPITAL CONTROLS CAPITAL FLOWS CAPITAL REQUIREMENT CAPITAL REQUIREMENTS CENTRAL BANKS CORPORATE INCOME TAXES DEBT DEBT SECURITIES DEFAULT RISK ECONOMIC CONDITIONS ECONOMIC GROWTH EMERGING ECONOMIES EMPIRICAL ANALYSIS FINANCIAL ASSETS FINANCIAL INFORMATION FINANCIAL INTEGRATION FINANCIAL INTERMEDIATION FINANCIAL SECTOR DEVELOPMENT FINANCIAL SERVICES FINANCIAL STABILITY FINANCIAL SYSTEMS FIXED COSTS FOREIGN BANKS FOREIGN ENTRY GLOBALIZATION GOVERNMENT INTERVENTION INFLATION INFORMATION COSTS INTERNATIONAL BANKING INTERNATIONAL BANKS LATIN AMERICAN LAWS LENDING BEHAVIOR PRICE RISK RATES SAVINGS SECURITIES SHAREHOLDERS SUBSIDIARIES SUPERVISORY AUTHORITIES TAXATION TRANSPORT VOLATILITY The authors analyze the determinants and implications for financial stability of the mix of international banks' claims countries receive. In particular, they distinguish between local claims, extended by international banks through their affiliates in a host (or claim recipient) country, and cross-border claims, booked from outside the host country, typically from banks' headquarters in their home countries. Using data on U.S., Spanish, and Italian banks' foreign claims across countries, the authors find that the share of local foreign claims is primarily driven by the degree of "freedom" in the host banking sector and by business opportunities in the local market. Entry requirements, startup and informational costs associated with international banking also play a role, but their influence is less robust. Finally, they find that the mix of international bank claims has implications for financial stability, since foreign claim volatility is lower in countries that receive a larger share of local claims. 2012-06-19T19:59:30Z 2012-06-19T19:59:30Z 2005-10 http://documents.worldbank.org/curated/en/2005/10/6350149/mix-international-banks-foreign-claims-determinants-implications http://hdl.handle.net/10986/8475 English Policy Research Working Paper; No. 3755 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank World Bank, Washington, DC Publications & Research :: Policy Research Working Paper Publications & Research Europe and Central Asia Italy United States Spain |
| repository_type |
Digital Repository |
| institution_category |
Foreign Institution |
| institution |
Digital Repositories |
| building |
World Bank Open Knowledge Repository |
| collection |
World Bank |
| language |
English |
| topic |
AFFILIATE AFFILIATES AGENTS APPLICATIONS BALANCE OF PAYMENTS BANK CAPITAL BANK OF SPAIN BANK PROFITS BANKING CRISIS BANKING SECTOR BORROWING CAPITAL CONTROLS CAPITAL FLOWS CAPITAL REQUIREMENT CAPITAL REQUIREMENTS CENTRAL BANKS CORPORATE INCOME TAXES DEBT DEBT SECURITIES DEFAULT RISK ECONOMIC CONDITIONS ECONOMIC GROWTH EMERGING ECONOMIES EMPIRICAL ANALYSIS FINANCIAL ASSETS FINANCIAL INFORMATION FINANCIAL INTEGRATION FINANCIAL INTERMEDIATION FINANCIAL SECTOR DEVELOPMENT FINANCIAL SERVICES FINANCIAL STABILITY FINANCIAL SYSTEMS FIXED COSTS FOREIGN BANKS FOREIGN ENTRY GLOBALIZATION GOVERNMENT INTERVENTION INFLATION INFORMATION COSTS INTERNATIONAL BANKING INTERNATIONAL BANKS LATIN AMERICAN LAWS LENDING BEHAVIOR PRICE RISK RATES SAVINGS SECURITIES SHAREHOLDERS SUBSIDIARIES SUPERVISORY AUTHORITIES TAXATION TRANSPORT VOLATILITY |
| spellingShingle |
AFFILIATE AFFILIATES AGENTS APPLICATIONS BALANCE OF PAYMENTS BANK CAPITAL BANK OF SPAIN BANK PROFITS BANKING CRISIS BANKING SECTOR BORROWING CAPITAL CONTROLS CAPITAL FLOWS CAPITAL REQUIREMENT CAPITAL REQUIREMENTS CENTRAL BANKS CORPORATE INCOME TAXES DEBT DEBT SECURITIES DEFAULT RISK ECONOMIC CONDITIONS ECONOMIC GROWTH EMERGING ECONOMIES EMPIRICAL ANALYSIS FINANCIAL ASSETS FINANCIAL INFORMATION FINANCIAL INTEGRATION FINANCIAL INTERMEDIATION FINANCIAL SECTOR DEVELOPMENT FINANCIAL SERVICES FINANCIAL STABILITY FINANCIAL SYSTEMS FIXED COSTS FOREIGN BANKS FOREIGN ENTRY GLOBALIZATION GOVERNMENT INTERVENTION INFLATION INFORMATION COSTS INTERNATIONAL BANKING INTERNATIONAL BANKS LATIN AMERICAN LAWS LENDING BEHAVIOR PRICE RISK RATES SAVINGS SECURITIES SHAREHOLDERS SUBSIDIARIES SUPERVISORY AUTHORITIES TAXATION TRANSPORT VOLATILITY Herrero, Alicia García Martínez Pería, Maria Soledad The Mix of International Banks’ Foreign Claims : Determinants and Implications |
| geographic_facet |
Europe and Central Asia Italy United States Spain |
| relation |
Policy Research Working Paper; No. 3755 |
| description |
The authors analyze the determinants and implications for financial stability of the mix of international banks' claims countries receive. In particular, they distinguish between local claims, extended by international banks through their affiliates in a host (or claim recipient) country, and cross-border claims, booked from outside the host country, typically from banks' headquarters in their home countries. Using data on U.S., Spanish, and Italian banks' foreign claims across countries, the authors find that the share of local foreign claims is primarily driven by the degree of "freedom" in the host banking sector and by business opportunities in the local market. Entry requirements, startup and informational costs associated with international banking also play a role, but their influence is less robust. Finally, they find that the mix of international bank claims has implications for financial stability, since foreign claim volatility is lower in countries that receive a larger share of local claims. |
| format |
Publications & Research :: Policy Research Working Paper |
| author |
Herrero, Alicia García Martínez Pería, Maria Soledad |
| author_facet |
Herrero, Alicia García Martínez Pería, Maria Soledad |
| author_sort |
Herrero, Alicia García |
| title |
The Mix of International Banks’ Foreign Claims : Determinants and Implications |
| title_short |
The Mix of International Banks’ Foreign Claims : Determinants and Implications |
| title_full |
The Mix of International Banks’ Foreign Claims : Determinants and Implications |
| title_fullStr |
The Mix of International Banks’ Foreign Claims : Determinants and Implications |
| title_full_unstemmed |
The Mix of International Banks’ Foreign Claims : Determinants and Implications |
| title_sort |
mix of international banks’ foreign claims : determinants and implications |
| publisher |
World Bank, Washington, DC |
| publishDate |
2012 |
| url |
http://documents.worldbank.org/curated/en/2005/10/6350149/mix-international-banks-foreign-claims-determinants-implications http://hdl.handle.net/10986/8475 |
| _version_ |
1764407905883258880 |