| Title: |
banking |
| Authors: |
Diemo Dietrich; Uwe Vollmer; Jel-codes G; Niels Krap |
| Contributors: |
The Pennsylvania State University CiteSeerX Archives |
| Source: |
http://www.uni-graz.at/socialpolitik/papers/Dietrich.pdf. |
| Publication Year: |
2008 |
| Collection: |
CiteSeerX |
| Subject Terms: |
Incomplete financial contracting; Cross-border financial services; Multinational banking; Liquidity allocation; Capital regulation |
| Description: |
We study how capital requirements influence a bank’s mode of foreign market entry. We model an internationally operating bank that creates and allocates liquidity across countries and argue that the advantage of multinational banking over offering cross-border financial services depends on the benefit and the cost of intimacy with local markets. The benefit is that it allows multinational banks to create more liquidity. The cost is that it causes inefficiencies in internal capital markets, on which a multinational bank relies to allocate liquidity across countries. Capital requirements affect this trade-off by influencing the degree of inefficiency in internal capital markets. |
| Document Type: |
text |
| File Description: |
application/pdf |
| Language: |
English |
| Relation: |
http://citeseerx.ist.psu.edu/viewdoc/summary?doi=10.1.1.399.972 |
| Availability: |
http://citeseerx.ist.psu.edu/viewdoc/summary?doi=10.1.1.399.972; http://www.uni-graz.at/socialpolitik/papers/Dietrich.pdf |
| Rights: |
Metadata may be used without restrictions as long as the oai identifier remains attached to it. |
| Accession Number: |
edsbas.F4F03FFF |
| Database: |
BASE |