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Cross-Border Banking and Transmission Mechanisms: The Case of Europe

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  • Claudia M. Buch

Abstract

International activities of commercial banks are a potential source for the transmission of shocks across countries. In Europe, bank finance plays a relatively important role, and efforts have been made at creating a level playing field for financial institutions. This paper reviews the stylized facts of the integration of European banking markets and the changing nature of cross-border banking. Although the openness of financial systems has increased, bilateral financial linkages among EU countries remain relatively small. The exception are claims of German banks on a number of smaller countries, and we use these data for an analysis of the determinants of cross-border lending patterns.

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Bibliographic Info

Paper provided by Kiel Institute for the World Economy in its series Kiel Working Papers with number 1063.

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Length: 76 pages
Date of creation: Jul 2001
Date of revision:
Handle: RePEc:kie:kieliw:1063

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Keywords: cross-border banking; European integration; transmission of shocks;

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Cited by:
  1. Manna, Michele, 2004. "Developing statistical indicators of the integration of the euro area banking system," Working Paper Series, European Central Bank 0300, European Central Bank.

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