Information or Regulation: What Drives the International Activities of Commercial Banks?

Buch, Claudia M.

doi:10.1353/mcb.2003.0042

Cited by 225 publications

(152 citation statements)

References 31 publications

Supporting

Mentioning

140

Contrasting

Unclassified

Order By: Relevance

“…Second, by studying how distance influences the performance of foreign banks, our study contributes to the rapidly increasing literature on the impact of distance on the activities and performance of financial intermediaries. This includes studies that find evidence of the considerable impact of distance on international investment decisions (Buch 2003), loan rates (DeGryse and Ongena 2005), lending decisions (Mian 2006) and bank branching (Grosse and Goldberg 1991). Third, most studies focus only on one or a small group of (developed or developing) countries, with some notably exceptions, such as Claessens, Demirgüç-Kunt and Huizinga (2001) and Micco, Panizza and Yanez (2007), whereas our results reflect evidence from a large number of countries.…”

Section: Introductionmentioning

confidence: 64%

Being a foreigner among domestic banks: Asset or liability?

Claessens

Horen

2012

Journal of Banking & Finance

135

View full text Add to dashboard Cite

Do foreign banks have an advantage operating abroad? The existing literature has come up with different answers. Studying the performance of foreign banks relative to domestic banks in a large number of countries between 1999 and 2006, we find that the answer importantly depends on a number of factors. Specifically, foreign banks tend to perform better when from a high income country and when competition in the host country is limited. They also perform better when they are large and rely more on deposits for funding. Foreign banks improve their performance over time, possibly as they adapt to the local institutional environment. Foreign banks from home countries geographical or cultural close to the host country perform better than distant foreign banks. Institutional familiarity, however, does not help (improve) foreign banks' performance. These findings show that it is important to control for heterogeneity among foreign banks when studying their performance and help reconcile some contradictory results found in the literature. JEL Classification Codes: F21, F23, G21

show abstract

Section: Introductionmentioning

confidence: 64%

Being a foreigner among domestic banks: Asset or liability?

Claessens

Horen

2012

Journal of Banking & Finance

135

View full text Add to dashboard Cite

show abstract

“…In finding the determinants of the stocks of banks' cross-border assets and liabilities, earlier literature has been fairly successful. Buch (2003), for instance, studies bilateral cross-border asset holdings of banks that report to the Bank for International Settlements (BIS). She finds that, apart from market size, regulations and information costs affect the patterns of cross-border asset holdings.…”

Section: Motivationmentioning

confidence: 99%

International Bank Portfolios: Short- and Long-Run Responses to the Business Cycle

Blank

Buch

2007

SSRN Journal

Self Cite

View full text Add to dashboard Cite

show abstract

“…First, it adds to the literature on the determinants of global bank activities by describing how corporate taxation influences the location of proprietary trading assets. Previous papers focus on other country-level determinants of the banks international asset choice, such as expropriation risk (Dell'Ariccia and Marquez, 2010) and regulation (Buch, 2003;Houston, Lin, and Ma, 2012).…”

Section: Introductionmentioning

confidence: 99%

Trading Offshore: Evidence on Banks' Tax Avoidance

Langenmayr

Reiter

2017

SSRN Journal

View full text Add to dashboard Cite

Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. Little is known about how banks shift profits to low-tax countries. Because of their specific business model, banks use profit shifting channels different from those of other firms. We propose a novel and bank-specific method of profit shifting: the strategic relocation of proprietary trading to low-tax jurisdictions. Using regulatory data from the German central bank, we show that a one percentage point lower corporate tax rate increases banks' fixedincome trading assets by 4.0% and trading derivatives by 9.0%. This increase does not arise from a relocation of real activities (i.e. traders); instead, it stems from the relocation of book profits. Terms of use: Documents inJEL-Codes: H250, G210, F210.

show abstract

Information or Regulation: What Drives the International Activities of Commercial Banks?

Cited by 225 publications

References 31 publications

Being a foreigner among domestic banks: Asset or liability?

Being a foreigner among domestic banks: Asset or liability?

International Bank Portfolios: Short- and Long-Run Responses to the Business Cycle

Trading Offshore: Evidence on Banks' Tax Avoidance

Contact Info

Product

Resources

About