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Global Banking

In: Banking and Financial Markets

Author

Listed:
  • Andrada Bilan

    (University of Zurich)

  • Hans Degryse

    (Katholieke University of Leuven)

  • Kuchulain O’Flynn

    (University of Zurich)

  • Steven Ongena

    (University of Zurich)

Abstract

In this chapter, we review the literature that seeks to uncover the consequences of the integration of the global banking system. We begin by proving a detailed description of the main concepts in the global banking literature and the different channels through which economic shocks are transmitted. Next, we review how the integration of the banking system affects borrowing constraints, loan rates, and economic output. Further, we review the literature that seeks to uncover why and how banks establish branches and subsidiaries in foreign countries. We then review the literature on the effects of the assets of a local bank’s foreign affiliates on their sensitivity to local funding shocks? We continue by discussing how monetary policy is transmitted across boarders, both inward and outward transmission. Finally, we discuss how global banking interacts with macroprudential policy.

Suggested Citation

  • Andrada Bilan & Hans Degryse & Kuchulain O’Flynn & Steven Ongena, 2019. "Global Banking," Palgrave Macmillan Studies in Banking and Financial Institutions, in: Banking and Financial Markets, chapter 0, pages 133-178, Palgrave Macmillan.
  • Handle: RePEc:pal:pmschp:978-3-030-26844-2_6
    DOI: 10.1007/978-3-030-26844-2_6
    as

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