IDEAS home Printed from https://ideas.repec.org/p/fbb/wpaper/201060.html

Openness and Geographic Neutrality: How Do They Contribute to International Banking Integration?

Author

Listed:
  • Arribas Fernández Iván

    (University of Valencia; Ivie)

  • Pérez García Francisco

    (UNIVERSITY OF VALENCIA VALENCIAN ECONOMIC RESEARCH INSTITUTE (Ivie))

  • Tortosa-Ausina Emili

    (INSTITUTO VALENCIANO DE INVESTIGACIONES ECONÓMICAS (Ivie) UNIVERSITY JAUME I)

Abstract

The aim of this article is to develop new international financial integration indicators together with their determinants: financial openness and regularity (balance) of bilateral financial flows. The study s contribution is based on the definition of the Standard of Perfect Financial Integration (SPFI). This standard characterizes the scenario attainable when financial flows are not geographically biased, and cross-border asset trade is not affected by home bias. We assess the gap between a hypothetical scenario of geographic neutrality and the current level of financial integration, along with both of its components. The empirical application to the banking systems of 18 countries-accounting for 83% of international banking markets-over the 1999-2006 period enables us to conclude that the level of financial integration has advanced rapidly over the last few years, and is close to 50% as of 2006, i.e., we are halfway to the SPFI. However, notable differences among countries are both persistent and growing, and the integration level achieved for each banking system differs when assessed from the financial inflows or outflows perspective.

Suggested Citation

  • Arribas Fernández Iván & Pérez García Francisco & Tortosa-Ausina Emili, 2009. "Openness and Geographic Neutrality: How Do They Contribute to International Banking Integration?," Working Papers 201060, Fundacion BBVA / BBVA Foundation.
    • Handle: RePEc:fbb:wpaper:201060
    as

    Download full text from publisher

    File URL: http://www.fbbva.es/TLFU/tlfu/ing/publicaciones/documentos/fichadoc/index.jsp?codigo=386
    Download Restriction: no
    ---><---

    Other versions of this item:

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Bryane Michael, 2024. "What have we learned about political participation changing a financial centre’s competitiveness?," Journal of Banking Regulation, Palgrave Macmillan, vol. 25(4), pages 451-466, December.
    2. Ovidiu Stoica & Otilia-Roxana Oprea & Ionel Bostan & Carmen Sandu Toderașcu & Cristina Mihaela Lazăr, 2020. "European Banking Integration and Sustainable Economic Growth," Sustainability, MDPI, vol. 12(3), pages 1-19, February.
    3. Arribas, Iván & Pérez, Francisco & Tortosa-Ausina, Emili, 2011. "A network perspective on international banking integration," Journal of Policy Modeling, Elsevier, vol. 33(6), pages 831-851.

    More about this item

    Keywords

    ;
    ;
    ;
    ;

    JEL classification:

    • F15 - International Economics - - Trade - - - Economic Integration
    • F21 - International Economics - - International Factor Movements and International Business - - - International Investment; Long-Term Capital Movements
    • Z13 - Other Special Topics - - Cultural Economics - - - Economic Sociology; Economic Anthropology; Language; Social and Economic Stratification
    • F36 - International Economics - - International Finance - - - Financial Aspects of Economic Integration

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:fbb:wpaper:201060. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Fundacion BBVA / BBVA Foundation (email available below). General contact details of provider: https://edirc.repec.org/data/fbbvaes.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.