Publication:
Is the Financial Safety Net a Barrier to Cross-Border Banking?

Simple item page
dc.contributor.authorBertay, Ata Can
dc.contributor.authorDemirgüç-Kunt, Asli
dc.contributor.authorHuizinga, Harry
dc.date.accessioned2012-03-19T17:28:44Z
dc.date.available2012-03-19T17:28:44Z
dc.date.issued2012-01-01
dc.description.abstractA bank's interest expenses rise with its degree of internationalization, measured by its share of foreign liabilities in total liabilities or a Herfindahl index of international liability concentration, especially if the bank is performing badly. The results in this paper suggest that an international bank's cost of funds raised through a foreign subsidiary is 1.5-2.4 percent higher than the cost of funds for a purely domestic bank. That is a sizeable difference, given that the overall mean cost of funds is 3.3 percent. These results can be explained by limited incentives for national authorities to bail out an international bank, as well as an inefficient recovery and resolution process for international banks. In any event, a less reliable financial safety net appears to be a barrier to cross-border banking.en
dc.identifierhttp://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20120117092544
dc.identifier.doi10.1596/1813-9450-5947
dc.identifier.urihttps://hdl.handle.net/10986/3232
dc.languageEnglish
dc.relation.ispartofseriesPolicy Research Working Paper ; No. 5947
dc.rightsCC BY 3.0 IGO
dc.rights.holderWorld Bank
dc.rights.urihttp://creativecommons.org/licenses/by/3.0/igo/
dc.subjectARBITRAGE
dc.subjectASSET DIVERSIFICATION
dc.subjectBAILOUT
dc.subjectBALANCE SHEET
dc.subjectBANK ACTIVITY
dc.subjectBANK ASSET
dc.subjectBANK ASSETS
dc.subjectBANK BAILOUTS
dc.subjectBANK CREDITORS
dc.subjectBANK DEPOSIT
dc.subjectBANK FAILURE
dc.subjectBANK LOANS
dc.subjectBANK MARKET
dc.subjectBANK MERGERS
dc.subjectBANK PROFITABILITY
dc.subjectBANK REGULATION
dc.subjectBANK RESTRUCTURING
dc.subjectBANK RISK
dc.subjectBANK SUPERVISION
dc.subjectBANKING CRISES
dc.subjectBANKING CRISIS
dc.subjectBANKING INDUSTRY
dc.subjectBANKING MARKET
dc.subjectBANKING MARKETS
dc.subjectBANKING SECTOR
dc.subjectBARRIER
dc.subjectBASIS POINTS
dc.subjectBENCHMARK
dc.subjectBOND
dc.subjectBOND HOLDERS
dc.subjectBOND MARKETS
dc.subjectBONDS
dc.subjectBOOK VALUE
dc.subjectCDS
dc.subjectCENTRAL BANKING
dc.subjectCHECKS
dc.subjectCONFLICT OF INTEREST
dc.subjectCONFLICTS OF INTEREST
dc.subjectCONSUMER PRICE INFLATION
dc.subjectCOORDINATION FAILURE
dc.subjectCOST OF FUNDS
dc.subjectCOUNTRY FIXED EFFECTS
dc.subjectCREDIT INSTITUTIONS
dc.subjectCROSS-BORDER BANKING
dc.subjectCURRENCY
dc.subjectDEBENTURE
dc.subjectDEBENTURES
dc.subjectDEBT
dc.subjectDEBT INTEREST
dc.subjectDEBT ISSUES
dc.subjectDEFAULT RISK
dc.subjectDEPOSIT
dc.subjectDEPOSIT INSTITUTION
dc.subjectDEPOSIT INSURANCE
dc.subjectDEPOSITOR
dc.subjectDEPOSITORS
dc.subjectDEPOSITS
dc.subjectDEVELOPMENT POLICY
dc.subjectDISTRESSED BANKS
dc.subjectDIVIDEND
dc.subjectDOMESTIC BANK
dc.subjectDOMESTIC BANKS
dc.subjectDOUBLE TAXATION
dc.subjectDUMMY VARIABLE
dc.subjectEARNINGS
dc.subjectECONOMIC INTEGRATION
dc.subjectECONOMIC POLICY
dc.subjectECONOMIC TIME SERIES
dc.subjectECONOMIES OF SCALE
dc.subjectEUROPEAN CENTRAL BANK
dc.subjectEXPENSE RATIO
dc.subjectEXPENSE RATIOS
dc.subjectEXPORTS
dc.subjectEXTERNAL ASSETS
dc.subjectEXTERNALITIES
dc.subjectFINANCIAL CONGLOMERATES
dc.subjectFINANCIAL INSTITUTIONS
dc.subjectFINANCIAL MARKETS
dc.subjectFINANCIAL SAFETY
dc.subjectFINANCIAL SAFETY NET
dc.subjectFINANCIAL SAFETY NETS
dc.subjectFINANCIAL SECTOR
dc.subjectFINANCIAL SERVICES
dc.subjectFINANCIAL STABILITY
dc.subjectFINANCIAL SYSTEM
dc.subjectFISCAL BURDEN
dc.subjectFOREIGN BANK
dc.subjectFOREIGN BANKS
dc.subjectFOREIGN DIRECT INVESTMENT
dc.subjectFOREIGN DIRECT INVESTMENTS
dc.subjectGDP
dc.subjectGDP DEFLATOR
dc.subjectGDP PER CAPITA
dc.subjectGLOBAL BANKING
dc.subjectGLOBAL FINANCIAL SYSTEM
dc.subjectGLOBALIZATION
dc.subjectGROWTH RATE
dc.subjectGROWTH RATES
dc.subjectHOLDINGS
dc.subjectHOME COUNTRY
dc.subjectIMPLICIT SUBSIDIES
dc.subjectINCOME
dc.subjectINFLATION
dc.subjectINFLATION RATE
dc.subjectINFLATION RATES
dc.subjectINSTITUTIONAL REFORM
dc.subjectINSTRUMENT
dc.subjectINSURED DEPOSITS
dc.subjectINTEREST COSTS
dc.subjectINTEREST EXPENSE
dc.subjectINTEREST EXPENSES
dc.subjectINTEREST RATES
dc.subjectINTEREST SUBSIDIES
dc.subjectINTERNATIONAL BANK
dc.subjectINTERNATIONAL BANKING
dc.subjectINTERNATIONAL BANKS
dc.subjectINTERNATIONAL COOPERATION
dc.subjectINTERNATIONAL DIVERSIFICATION
dc.subjectINTERNATIONAL ECONOMY
dc.subjectINTERNATIONAL PORTFOLIO
dc.subjectINTERNATIONAL TRADE
dc.subjectINVESTMENT ASSETS
dc.subjectJURISDICTIONS
dc.subjectLEGAL SYSTEM
dc.subjectLEVEL PLAYING FIELD
dc.subjectLIABILITY
dc.subjectLIQUIDATION
dc.subjectMACROECONOMIC CONTROL
dc.subjectMACROECONOMIC POLICIES
dc.subjectMACROECONOMIC VARIABLES
dc.subjectMARGINAL COST
dc.subjectMARKET DISCIPLINE
dc.subjectMARKET INTEGRATION
dc.subjectMARKET VALUE
dc.subjectMONETARY FUND
dc.subjectMORAL HAZARD
dc.subjectMULTINATIONAL
dc.subjectMULTINATIONAL BANK
dc.subjectNATIONAL ECONOMIES
dc.subjectNOMINAL INTEREST RATES
dc.subjectOUTWARD PORTFOLIO INVESTMENTS
dc.subjectOWNERSHIP DATA
dc.subjectPERSONNEL EXPENSES
dc.subjectPORTFOLIO INVESTMENT
dc.subjectPOSITIVE COEFFICIENT
dc.subjectPOSITIVE COEFFICIENTS
dc.subjectPRICE VOLATILITY
dc.subjectPRIVATE SECTOR DEVELOPMENT
dc.subjectPROFITABILITY
dc.subjectPUBLIC GOOD
dc.subjectPUT OPTION
dc.subjectREAL GDP
dc.subjectRECAPITALIZATION
dc.subjectREGULATORS
dc.subjectREGULATORY BARRIERS
dc.subjectREGULATORY TREATMENT
dc.subjectRETURNS
dc.subjectRISK DIVERSIFICATION
dc.subjectRISK PROFILES
dc.subjectRISK TAKING
dc.subjectSAFETY NET
dc.subjectSHARE PRICE
dc.subjectSHORT TERM DEBT
dc.subjectSTOCK RETURNS
dc.subjectSTOCKS
dc.subjectSUBORDINATED DEBT
dc.subjectSUBSIDIARIES
dc.subjectSUBSIDIARY
dc.subjectTAX
dc.subjectTAXATION
dc.subjectTHRIFT INSTITUTIONS
dc.subjectVALUE OF ASSETS
dc.titleIs the Financial Safety Net a Barrier to Cross-Border Banking?en
dspace.entity.typePublication
okr.crossref.titleIs the Financial Safety Net a Barrier to Cross-Border Banking?
okr.date.disclosure2012-01-01
okr.date.doiregistration2025-04-10T11:04:42.167813Z
okr.doctypePublications & Research::Policy Research Working Paper
okr.docurlhttp://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20120117092544
okr.guid497881468159593632
okr.identifier.doi10.1596/1813-9450-5947
okr.identifier.externaldocumentum000158349_20120117092544
okr.identifier.internaldocumentum15636771
okr.identifier.reportWPS5947
okr.language.supporteden
okr.pdfurlhttp://www-wds.worldbank.org/external/default/WDSContentServer/WDSP/IB/2012/01/17/000158349_20120117092544/Rendered/PDF/WPS5947.pdfen
okr.unitDevelopment Research Group (DECRG)
okr.volume1 of 1
relation.isAuthorOfPublication234a20c0-893c-561a-8c90-6f5be5be5b9b
relation.isAuthorOfPublication.latestForDiscovery234a20c0-893c-561a-8c90-6f5be5be5b9b
relation.isSeriesOfPublication26e071dc-b0bf-409c-b982-df2970295c87
relation.isSeriesOfPublication.latestForDiscovery26e071dc-b0bf-409c-b982-df2970295c87
Files
Original bundle
Now showing 1 - 2 of 2
Thumbnail Image
Name:
WPS5947.pdf
Size:
2.47 MB
Format:
Adobe Portable Document Format
Download
No Thumbnail Available
Name:
WPS5947.txt
Size:
195.66 KB
Format:
Plain Text
Download
License bundle
Now showing 1 - 1 of 1
No Thumbnail Available
Name:
license.txt
Size:
1.71 KB
Format:
Plain Text
Description:
Download
Collections
Policy Research Working Papers