International Banking and Cross-border Effects of Regulation: Lessons from the United States / Jose Berrospide, Ricardo Correa, Linda Goldberg, Friederike Niepmann.

Format:

Book

Author/Creator:

Berrospide, Jose.

Contributor:

National Bureau of Economic Research.

Correa, Ricardo.

Goldberg, Linda.

Niepmann, Friederike.

Series:

Working Paper Series (National Bureau of Economic Research) no. w22645.

NBER working paper series no. w22645

Language:

English

Physical Description:

1 online resource: illustrations (black and white);

Place of Publication:

Cambridge, Mass. National Bureau of Economic Research 2016.

Summary:

Domestic prudential regulation can have unintended effects across borders and may be less effective in an environment where banks operate globally. Using U.S. micro-banking data for the first quarter of 2000 through the third quarter of 2013, this study shows that some regulatory changes indeed spill over. First, a foreign country's tightening of limits on loan-to-value ratios and local currency reserve requirements increase lending growth in the United States through the U.S. branches and subsidiaries of foreign banks. Second, a foreign tightening of capital requirements shifts lending by U.S. global banks away from the country where the tightening occurs to the United States and to other countries. Third, tighter U.S. capital regulation reduces lending by large U.S. global banks to foreign residents.

Notes:

Print version record

September 2016.