Series: Working Papers. 1736.
Author: Leonardo Gambacorta, Stefano Schiaffi and Adrian Van Rixtel.
Published in : CEPR Discussion Paper, CEPR DP11957 23 April 2017
Economic Inquiry, Volume 57, Issue 2, April 2019, Pages 1038-1055
Full document
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 post-break 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 inter-office accounts within the same banking group.