A Network Analysis of Global Banking: 1978-2010

Minoiu, Camelia; Reyes, Javier A.

doi:10.2139/ssrn.1903966

Cited by 111 publications

(140 citation statements)

References 44 publications

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“…The large increase in cross-border M&As in banking over the past three decades and the recent contraction in international banking networks have attracted considerable scholarly attention ( Minoiu and Reyes, 2013 ). Our paper focuses on country level determinants of M&As in banking.…”

Section: Discussionmentioning

confidence: 99%

What drives cross-border M&As in commercial banking?

Gulamhussen

Hennart

Pinheiro

2016

Journal of Banking & Finance

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a b s t r a c tUsing a gravity model, we analyze the determinants of the probability that commercial banks in 89 acquiring countries and 118 target countries will undertake M&As over a 30-year period and of the value of these M&As. We find that the value of cross-border M&As increases with the size of the acquiring country, and that both the probability and value of M&As vary positively with the depth of the financial market in acquirer countries and the presence of corporate and non-corporate customers from acquiring countries in target countries, and negatively with the geographic, psychic, and time zone distances between acquirer and target countries. Our study highlights the role of non-corporate customers and of psychic distance in the cross-border expansion of commercial banks through M&As.

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Section: Discussionmentioning

confidence: 99%

What drives cross-border M&As in commercial banking?

Gulamhussen

Hennart

Pinheiro

2016

Journal of Banking & Finance

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“…However, more recent contributions argue that, when measuring integration, it is relevant not only to consider the concept of openness but also the idea of connectedness. In this regard, Fagiolo et al (2010b), Kali and Reyes (2010) or Chinazzi et al (2013) adopt approaches based on network analysis to model the World Trade Web (WTW) as well as its financial counterpart-i.e., the international financial network or, more specific to our goals, the global banking network (Minoiu and Reyes, 2013). The ideas on which they are based were partly inspired by the influential seminal work of Allen and Gale (2000), but these approaches to measure the integration of banking and financial markets have recently been gaining more importance (Chinazzi et al, 2013;Minoiu and Reyes, 2013;Elliott et al, 2014;Hautsch et al, 2014;Garratt et al, 2014;Minoiu et al, 2015;Caballero, 2015;Berardi and Tedeschi, 2017), together with approaches considering connectedness among financial institutions in general (Billio et al, 2012;Drehmann and Tarashev, 2013).…”

Section: Some Previous Initiatives To Measure Banking Integrationmentioning

confidence: 99%

“…One variant of these approaches focused on the particular case of financial integration would include, among others, McGuire andTarashev (2006), von Peter (2007), Kali and Reyes (2010), Fagiolo et al (2010b), Minoiu and Reyes (2013), and Chinazzi et al (2013). These types of approaches are implicitly measuring de facto financial (or banking) integration.…”

Section: Introductionmentioning

confidence: 99%

Is full banking integration desirable?

Arribas

Peiró‐Palomino

Tortosa‐Ausina

2020

Journal of Banking & Finance

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We analyze the links between banking integration and economic development for a sample of OECD countries. We measure banking integration considering indicators that merge not only openness but also connectedness with other banking systems. We plug these indicators into income regressions, also controlling for other relevant variables considered by the literature. In contrast to previous initiatives, this second stage explicitly takes into account the differing levels of economic development of the countries in our sample, since the benefits of enhanced banking integration might not be generalizable. To this end, we implement quantile regression, also considering the presence of endogenous regressors. Results show that bank connectedness is more important for economic development than bank openness, but the combined effect (i.e., banking integration) overall is positive and significant. The quantile regression models used in the second stage show that the effects are stronger for the poorest economies.

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“…This Locational Banking Statistics data from the BIS has recently been used to study the channels of bilateral business cycle co-movement through integrated …nancial markets by Kalemli-Ozcan et al (2013) and Kalemli-Ozcan et al (2011). In addition, due to its bilateral nature, this data has been used to characterize cross-country banking networks (Minoiu and Reyes, 2013). In this dataset, BIS reporting banks within a country (the set of BIS reporting banks encompasses most banks, especially ones engaged in international transactions) report their stock of assets and liabilities with all parties, both banks and non-banks in another country.…”

Section: For This Data Most Papers Rely On the Imf's Balance Of Paymementioning

confidence: 99%

The Cyclicality of (Bilateral) Capital Inflows and Outflows

Davis

2015

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Recent research has shown that gross capital inflows and outflows are positively correlated and highly procyclical. This poses a puzzle since most theory predicts that capital inflows and outflows should be negatively correlated, and while capital inflows should be procyclical, capital outflows should be countercyclical. This previous work has examined the behavior of aggregate capital inflows and outflows (capital flows between a country and the rest of the world). This paper shows that bilateral capital inflows and outflows (flows between a pair of countries) are also positively correlated and strongly procyclical. This empirical finding poses a new puzzle. The data suggests that any model that can explain capital flows at the bilateral level needs to rely on market incompleteness and non-diversification. In addition, the data suggests that this positive correlation and procyclicality is largely the feature of crisis episodes. After controlling for crisis episodes, we find that bilateral capital flows move positively with GDP in the country receiving the capital and co-move negatively in the country sending the capital.

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A Network Analysis of Global Banking: 1978-2010

Cited by 111 publications

References 44 publications

What drives cross-border M&As in commercial banking?

What drives cross-border M&As in commercial banking?

Is full banking integration desirable?

The Cyclicality of (Bilateral) Capital Inflows and Outflows

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