DP11957 Changing business models in international bank funding
|Author(s):||Leonardo Gambacorta, Stefano Schiaffi, Adrian van Rixtel|
|Publication Date:||April 2017|
|Keyword(s):||bank funding, International Banks, structural reform initiatives|
|JEL(s):||C32, F65, G21|
|Programme Areas:||Financial Economics|
|Link to this Page:||www.cepr.org/active/publications/discussion_papers/dp.php?dpno=11957|
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 global 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.