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Concentration in cross-border banking

Author

Listed:
  • Inaki Aldasoro
  • Torsten Ehlers

Abstract

Cross-border bank credit is dominated by a small number of very sizeable links between banks in one country and borrowers in another. The largest-sized cross-border banking links are mainly between major advanced economies. Concentration increased up until the Great Financial Crisis (GFC) and has abated only slightly since. It is higher for interbank credit than for credit to the non-bank sector. Despite the substantial decline in interbank credit in the aftermath of the GFC, concentration in the interbank segment has remained high.

Suggested Citation

  • Inaki Aldasoro & Torsten Ehlers, 2019. "Concentration in cross-border banking," BIS Quarterly Review, Bank for International Settlements, June.
    • Handle: RePEc:bis:bisqtr:1906b
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    References listed on IDEAS

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    Citations

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    Cited by:

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    2. Capasso,Salvatore & Ohnsorge,Franziska Lieselotte & Shu Yu, 2022. "From Financial Development to Informality : A Causal Link," Policy Research Working Paper Series 10192, The World Bank.
    3. Nissinen, Juuso, 2024. "Cross-country spillover effects of interest rate and credit constraint policies," Finance Research Letters, Elsevier, vol. 66(C).
    4. Aldasoro, Iñaki & Beltrán, Paula & Grinberg, Federico & Mancini-Griffoli, Tommaso, 2023. "The macro-financial effects of international bank lending on emerging markets," Journal of International Economics, Elsevier, vol. 142(C).
    5. Torsten Ehlers & Mathias Hoffmann & Alexander Raabe, 2020. "Non-US global banks and dollar (co-)dependence: how housing markets became internationally synchronized," IHEID Working Papers 18-2020, Economics Section, The Graduate Institute of International Studies.
    6. Ana Kristel Lapid & Rogelio Mercado & Peter Rosenkranz, 2023. "Concentration in Asia's cross‐border banking: Determinants and impacts," Pacific Economic Review, Wiley Blackwell, vol. 28(2), pages 267-292, May.
    7. Lorenz Emter & Peter McQuade & Swapan-Kumar Pradhan & Martin Schmitz, 2024. "Determinants of currency choice in cross-border bank loans," BIS Working Papers 1184, Bank for International Settlements.
    8. Stijn Claessens, 2019. "Fragmentation in global financial markets: good or bad for financial stability?," BIS Working Papers 815, Bank for International Settlements.
    9. Ozgur, Gokcer, 2023. "The cross-border interconnectedness of shadow banking," Economic Modelling, Elsevier, vol. 126(C).
    10. Raphael Cunha & Andreas Kern, 2022. "Global banking and the spillovers from political shocks at the core of the world economy," The Review of International Organizations, Springer, vol. 17(4), pages 717-749, October.

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    More about this item

    JEL classification:

    • G15 - Financial Economics - - General Financial Markets - - - International Financial Markets
    • F30 - International Economics - - International Finance - - - General
    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages

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