Changing Forces of Gravity: How the Crisis Affected International Banking

Buch, Claudia M.; Neugebauer, Katja; Schröder, Christoph

doi:10.2139/ssrn.2385996

Cited by 11 publications

(7 citation statements)

References 17 publications

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“…The study uses bank level data across five source countries. A recent consideration of financial frictions and the crisis is provided by Buch et al (2013). Using German bank-level data the authors show that financial frictions were important during the crisis, with distance emerging strongly from their specifications.…”

Section: Theoretical Motivationmentioning

confidence: 99%

Bilateral adjustment of bank assets: Boom and bust

Mehigan

2018

Emerging Markets Review

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This paper provides evidence that bilateral factors were relevant for the adjustment of bank assets before and during the Great Recession. This finding is consistent with the theory that monitoring costs or informational frictions can help explain the adjustment of bank assets at a bilateral country level. Distance is a particularly relevant friction, and has non-uniform effects for advanced and emerging hosts. If the assets are denominated in domestic rather than foreign currency, this can reduce the negative effect of distance on adjustment. Further we find that trade, colonial ties and the history of a position are important for the bilateral adjustment of bank assets.

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Section: Theoretical Motivationmentioning

confidence: 99%

Bilateral adjustment of bank assets: Boom and bust

Mehigan

2018

Emerging Markets Review

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“…This paper refers to three major strands of literature. Starting from the literature on internationalization and firm size (e.g., Melitz, 2003), it contributes to the literature on gravity models, in particular those focusing on the explanation of financial transactions (e.g., Portes and Rey, 2005;Daude and Fratzscher, 2008), as well as to the literature on financial globalization and cross-border financial linkages (e.g., Buch et al, 2014b;Niepmann, 2015).…”

Section: Literaturementioning

confidence: 99%

Few Large with Many Small: Banks Size Distribution and Cross-Border Financial Linkages

et al. 2019

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We estimate the effect of the distribution of banks by asset size on a country's propensity to engage in cross-border banking. Countries where the distribution of banks by asset size is more skewed to the right (with few large and many small banks) lend more abroad and are recipients of more funds from foreign banks. This is consistent with the fact that large banks, with easier access to the international financial markets, act as a hub for smaller banks and at the same time stand out as safer too-big-to fail counterparts for foreign partners.

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“…All activities of those institutions connected with spreading and distributing products of financial engineering on individual domestic markets (often offered to agents with lack of sufficient knowledge) contributed to greater risk (political, operational, etc. ) in the individual markets as well as to great instability of the overall financial system [Buch, Neugebauer, Schröder 2013;Palley 2012].…”

Section: Definition Features and Consequences Of Banks' Internationamentioning

confidence: 99%

Selected processes influencing contemporary banking systems

Marszałek¹

2015

Prace Naukowe Uniwersytetu Ekonomicznego we Wrocławiu

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Changing Forces of Gravity: How the Crisis Affected International Banking

Cited by 11 publications

References 17 publications

Bilateral adjustment of bank assets: Boom and bust

Bilateral adjustment of bank assets: Boom and bust

Few Large with Many Small: Banks Size Distribution and Cross-Border Financial Linkages

Selected processes influencing contemporary banking systems

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