What drives local lending by global banks?

Stefan Avdjiev, Uluc Aysun and Ralf Hepp

Journal of International Money and Finance, 2019, vol. 90, issue C, 54-75

Abstract: We find that the lending behavior of global banks’ subsidiaries throughout the world is more closely related to local macroeconomic conditions and their financial conditions than to those of their owner-specific counterparts. This inference is drawn from a panel dataset populated with bank-level observations from the Bankscope database. Using this database, we identify ownership structures and incorporate them into a unique methodology that identifies and compares the owner and subsidiary-specific determinants of lending. A distinctive feature of our analysis is that we use multi-dimensional country-level data from the BIS international banking statistics to account for exchange rate fluctuations and cross-border lending.

Keywords: Bankscope; G-SIB; Bank-level data; Global banks; BIS international banking statistics (search for similar items in EconPapers)
JEL-codes: E44 F32 G15 G21 (search for similar items in EconPapers)
Date: 2019
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Citations: View citations in EconPapers (11)

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Working Paper: What drives local lending by global banks? (2018)
Working Paper: What drives local lending by global banks? (2017)
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Persistent link: https://EconPapers.repec.org/RePEc:eee:jimfin:v:90:y:2019:i:c:p:54-75

DOI: 10.1016/j.jimonfin.2018.09.005

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