nep-ifn New Economics Papers
on International Finance
Issue of 2014‒08‒25
one paper chosen by
Vimal Balasubramaniam
University of Oxford

  1. A comparison of the internal and external determinants of global bank loans: Evidence from bilateral cross-country data By Uluc Aysun; Ralf Hepp

  1. By: Uluc Aysun (University of Central Florida, Orlando, FL); Ralf Hepp (Fordham University, Bronx, NY)
    Abstract: This paper finds that factors determined outside of a country are more closely related to the global bank loans she receives. These loans are more stable when global banks are less competitive and have a higher presence in the recipient country. We obtain our results by using data on the bilateral loans positions of 15 countries and a unique methodology to identify and compare the independent effects of external and internal factors. We find support for our empirical results and draw more detailed inferences for competition and global bank presence by solving a simple model of global banking.
    Keywords: Cross-country loans, global banks, competition, overlapping generations model
    JEL: E44 F34 G15 G21
    Date: 2014–08

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