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Diversification of Banks' International Portfolios: Evidence and Policy Lessons

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  • Claudia M. Buch
  • Katja Neugebauer

Abstract

Over the past decades, banks have significantly increased their cross-border asset positions. The ongoing crisis on international financial markets has raised the question whether this increase in cross-border activities has allowed banks to diversify risks and to what extent it has increased banks' exposure to systemic risks. In this contribution, we review the existing empirical evidence.

Suggested Citation

  • Claudia M. Buch & Katja Neugebauer, 2009. "Diversification of Banks' International Portfolios: Evidence and Policy Lessons," Working Paper / FINESS 2.4, DIW Berlin, German Institute for Economic Research.
    • Handle: RePEc:diw:diwfin:diwfin2.4
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    File URL: https://www.diw.de/documents/publikationen/73/diw_01.c.412878.de/diw_finess_02040.pdf
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    References listed on IDEAS

    as
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    Cited by:

    1. Francesco Vallascas & Kevin Keasey, 2013. "The Volatility of European Banking Systems: A Two-Decade Study," Journal of Financial Services Research, Springer;Western Finance Association, vol. 43(1), pages 37-68, February.
    2. Dirk Schoenmaker & Wolf Wagner, 2013. "Cross-Border Banking in Europe and Financial Stability," International Finance, Wiley Blackwell, vol. 16(1), pages 1-22, February.

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    More about this item

    Keywords

    international banking; financial integration;

    JEL classification:

    • F3 - International Economics - - International Finance

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