International Taxation and Cross-Border Banking

Cross-Border Banking and Global Liquidity

We investigate global factors associated with bank capital ‡ows. We formulate a model of the international banking system where global banks interact with local banks. The solution highlights the bank leverage cycle as the determinant of the transmission of …nancial conditions across borders through banking sector capital ‡ows. A distinctive prediction of the model is that local currency apprec...

Competitive Implications of Cross-Border Banking

Cross-border banking has long been an important part of the trend towards increased globalization and financial integration. In terms of this paper, cross-border banking refers to both cross-border capital flows as well crossborder entry in banking. Cross-border capital flows have been for long important drivers of financial integration. Particularly in the form of crossborder entry, cross-bord...

Puzzles Over International Taxation Of Cross Border Flows Of Capital Income

Information Sharing and Cross-border Entry in European Banking

Information asymmetries can severely limit cross-border border expansion of banks. When a bank enters a new market, it has incomplete information about potential new clients. Such asymmetries are reduced by credit registers, which distribute financial data on bank clients. We investigate the interaction of credit registers and bank entry modes (in form of branching and M&A) by using a new set o...

Capital Flows, Cross-Border Banking and Global Liquidity∗

This paper develops a model of global liquidity with international banks as the carriers of liquidity conditions across borders. Global banks raise wholesale funding from financial centers which is deployed globally through centralized portfolio allocation decisions from headquarters. As the shadow value of bank funding is equalized across regions, permissive credit conditions in financial cent...