Financial Integration and Banking Regulation: Cross-Border Lending in Germany

2009 ◽  
Author(s):  
Jarko Fidrmuc ◽  
Christa Hainz
Keyword(s):  
Financial Integration ◽  
Banking Regulation ◽  
Cross Border

A Framework for Regional Banking Regulation in ASEAN

2020 ◽  
Vol 19 (3) ◽  
pp. 111-125
Author(s):  
Peter J. Morgan
Keyword(s):  
Capital Flows ◽  
Deposit Insurance ◽  
Financial Regulation ◽  
Financial Integration ◽  
Banking Regulation ◽  
Safety Net ◽  
Regional Level ◽  
Cross Border ◽  
Banking Institutions ◽  
Financial Safety Net

This paper argues that there is a role for regional-level institutions of banking regulation in the ASEAN region. This is particularly important in an environment of increasing financial integration and harmonization, including exposures to shocks from volatile capital flows and cross-border banking institutions. The paper examines four aspects of financial regulation: microprudential regulation, macroprudential regulation, resolution capacity and deposit insurance, and a financial safety net. The paper argues that EU regional banking regulation provides a useful reference point, but the lower degree of credit market openness in ASEAN implies that a more nuanced approach can be adopted, and makes specific recommendations.

Economic and financial integration and the rise of cross-border M&As

2011 ◽  
pp. 296-322 ◽  
Author(s):  
S. Brakman ◽  
G. Garita ◽  
H. Garretsen ◽  
C. Van Marrewijk
Keyword(s):  
Financial Integration ◽  
Cross Border

The Domestic Politics of Banking Regulation

2003 ◽  
Vol 57 (2) ◽  
pp. 307-336 ◽  
Author(s):  
Frances Rosenbluth ◽  
Ross Schaap
Keyword(s):  
Financial Integration ◽  
Domestic Politics ◽  
Banking System ◽  
Banking Regulation ◽  
The Political ◽  
Industrialized Countries ◽  
Electoral Rules ◽  
Political Dynamics ◽  
Financial Regulatory

This article seeks to ground financial regulatory choices in domestic politics. Based on evidence from twenty-two industrialized countries, we argue that electoral rules—specifically, the extent to which they are centrifugal or centripetal—have a significant effect on whether the banks or their consumers pay for the security of the banking system. Moreover, despite the homogenizing effects of global financial integration, the political dynamics generated by these electoral rules continue to shape the nature and extent of prudential regulations that countries adopt in the place of banking cartels.

Default of Systemically Important Financial Intermediaries: Short-term Stability versus Incentive Compatibility?

2013 ◽  
Vol 14 (1) ◽  
pp. 15-30 ◽  
Author(s):  
Andreas Dombret ◽  
André Ebner
Keyword(s):  
Financial Institutions ◽  
Financial Stability ◽  
Financial Integration ◽  
Incentive Compatibility ◽  
Financial Intermediaries ◽  
Entry And Exit ◽  
Short Term ◽  
Market Participants ◽  
Cross Border ◽  
Crucial Feature

Abstract Financial integration and globalization have acted as a major stimulus in the development of large, internationally operating banks, which not only provide cross-border services but also have a local presence. While these banks are themselves drivers of economic integration, they can pose serious threats to financial stability. Their size, interconnectedness and importance as providers of specific services mean that financial institutions can be too-systemic-to-fail (TSTF). Since the entry and exit of market participants is a crucial feature of well-functioning markets, the absence of any credible possibility of failure leads to serious distortions. This analysis gives an overview of the TSTF problem and discusses the challenges to be faced in establishing credible resolution regimes.

scholarly journals The effect of banking regulation on cross-border lending

2013 ◽  
Vol 37 (5) ◽  
pp. 1310-1322 ◽  
Author(s):  
Jarko Fidrmuc ◽  
Christa Hainz
Keyword(s):  
Banking Regulation ◽  
Cross Border

Why Don't Asians Invest in Asia? The Determinants of Cross-Border Portfolio Holdings

2009 ◽  
Vol 8 (3) ◽  
pp. 228-246 ◽  
Author(s):  
Alicia García-Herrero ◽  
Philip Wooldridge ◽  
Doo Yong Yang
Keyword(s):  
Financial Markets ◽  
Financial Integration ◽  
Emerging Market ◽  
Trade Flows ◽  
Asia Pacific ◽  
Portfolio Holdings ◽  
Cross Border ◽  
Advanced Industrial Economies ◽  
European Economies ◽  
Source Countries

This paper seeks to understand why Asian foreign investment is concentrated in financial markets outside of the region instead of in Asian markets. We analyze empirically the geographical composition of the cross-border portfolio holdings of more than 40 source countries. We compare these benchmark results with those of four subgroups: advanced industrial economies, emerging market economies, European economies, and Asia-Pacific economies. The lack of liquidity in Asian financial markets turns out to be one reason why Asian capital is invested predominantly outside the region, notwithstanding the short distances and large trade flows between Asian economies. Initiatives to improve the liquidity of Asian financial markets, therefore, may be a useful way to stimulate financial integration within the region.

Quota Formula Review - Data Update and Further Considerations - Supplementary Information

Policy Papers ◽  
2012 ◽  
Vol 2012 (52) ◽  
Author(s):  
Keyword(s):  
Financial Integration ◽  
Supplementary Information ◽  
Related Data ◽  
Cross Border ◽  
International Financial Integration ◽  
Comprehensive Picture ◽  
Financial Interconnectedness ◽  
Data Update

This Annex presents additional staff work on financial interconnectedness. The analysis examines a possible methodology for constructing indicators of financial interconnectedness and related data issues. In addition, it presents some illustrative simulation results.This annex focuses on financial interconnectedness that takes into account the pattern and size of cross-border financial linkages and potentially provides a more comprehensive picture of a country’s international financial integration

scholarly journals Macroprudential ring-fencing

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Tomáš Konečný ◽  
Lukáš Pfeifer
Keyword(s):  
Financial Stability ◽  
Capital Mobility ◽  
Financial Integration ◽  
Banking Union ◽  
Policy Action ◽  
Content Type ◽  
Cross Border ◽  
Macroprudential Policies ◽  
Structural Capital ◽  
The Eu

Purpose This paper aims to focus on capital-related macroprudential policies in the context of recent policy discussions on the removal of barriers to the mobility of capital and liquidity of cross-border banks in the European Union (EU). Design/methodology/approach This study first discusses the link between financial stability and internal resource mobility of cross-border banks. Then, it examines past heterogeneity in structural capital buffers as key macroprudential capital instruments applied in the EU and relate them to costs of policy action, degree of foreign penetration and membership in the Banking Union. Findings Observed phase-in patterns of structural capital buffers in the EU are broadly consistent with costs of policy action, degree of foreign penetration and membership in the Banking Union as potential factors. The process of financial integration could be further enhanced through reduced uncertainty in the application of macroprudential policies that constrain capital mobility of cross-border banks. Originality/value This paper anchors macroprudential policies into a wider discussion on the mechanism and implications of ring-fencing in the EU over time. It discusses two policy areas, macroprudential policies and proposals for deeper financial integration, that share the same financial stability objective but tend to emphasize different implications of the mobility of capital and liquidity of cross-border banks in the EU. The study provides a discussion of potential implications of the recent adoption of the CRRII/CRDV legislation for future heterogeneity of macroprudential policies in the EU.

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