Cross-border banking and foreign branch regulation in Europe
| Autor: | Gianluca Mattarocci, Lucia Gibilaro |
|---|---|
| Jazyk: | angličtina |
| Rok vydání: | 2021 |
| Předmět: |
Settore SECS-P/11
Strategy and Management media_common.quotation_subject Financial system Sample (statistics) Loans Capital adequacy ratio Foreign banks Regulatory arbitrage Originality Capital requirements Value (economics) Capital requirement Relevance (law) media_common.cataloged_instance Deposits Arbitrage Business European union Loans Foreign banks Deposits Regulatory arbitrage Capital requirements media_common |
| Popis: | PurposeThis paper aims to examine the relevance of cross-border activity in the European banking sector, evaluating the role of differences in regulation to explain the level of interest in entering foreign markets.Design/methodology/approachThe sample considers all banks in the European Union (EU 28) existing at year-end 2017, and information about the ultimate owners’ nationality to classify local and foreign banks is collected. The analysis provides a mapping of regulatory restrictions for foreign banks and evaluates how they impact the role of foreign players in the deposit and lending markets.FindingsResults show that the lower are the capital adequacy requirements, the higher are the amounts of loans and deposits offered by non-European Economic Area banks and, additionally, the higher the probability of having a foreign bank operating in the country.Originality/valueThis paper provides new evidence on regulatory arbitrage opportunities in the EU and outlines differences among EU countries not previously studied. |
| Databáze: | OpenAIRE |
| Externí odkaz: |
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