E-mail alert  |  Contact  
Search:       Go  
Background  |   Sponsoring institutions  |   Editorial board   |   Advisory board   |   Associate editors
Call for papers  |   Submission guidelines  |   Editorial process
Current issue  |   Past issues  |  
March 2017 issue
List of authors
 
Buch, Goldberg
Damar, Mordel
Auer, Ganarin, Towbin
Jara, Cabezas
Ohls, Pramor, Tonzer
Bussière, Schmidt, Vinas
Ho, Wong, Tan
Caccavaio, Carpinelli, Marinelli
Levin-Konigsberg, López, López-Gallo, Martínez-Jaramillo
Park, Lee
Frost, de Haan, van Horen
Gajewski, Krzesicki
Bonfim, Costa
Başkaya, Binici, Kenç
Hills, Reinhardt, Sowerbutts, Wieladek
Berrospide, Correa, Goldberg, Niepmann
Cerutti, Correa, Fiorentino, Segalla
Avdjiev, Koch, McGuire, von Peter
IJCB Home   Read the journal   Past issue
Past issues
2017
 
September
June
March
February
2016
 
December
September
June
March
2015
 
December
September
June
March
January
2014
 
December
September
June
March
2013
 
December
September
June
March
January
2012
 
December
September
June
March
January
2011
 
December
September
June
March
2010
 
December
September
June
March
2009
 
December
September
June
March
2008
 
December
September
June
March
2007
 
December
September
June
March
2006
 
December
September
June
March
2005
 
December
September
May

International Banking and Cross-Border Effects of Regulation: Lessons from Poland

by Krzysztof Gajewski and Oskar Krzesicki
Narodowy Bank Polski

Abstract

The main goal of this paper is to determine whether foreign banks adjust their lending in Poland in response to changes to regulatory policy in their home countries. Poland, with its conservative, predominately foreign-owned banks concentrated on domestic activities, is an interesting case to study the existence of inward policy spillovers. Bank-level data and fixedeffect panel models are used to assess the impact of homecountry regulations on the quarterly growth rate of lending to the domestic non-financial private sector. We especially focus on the changes in capital requirements, as they have been expected by Polish regulators to negatively affect the operations of foreign-owned banks in Poland. We find that tightening capital requirements in the home countries of Polish foreign-owned banks has a significant, negative effect on credit extension in Poland; however, when we also account for Polish regulations in this area, the impact of home-country changes is no longer significant, which suggests that local regulatory actions are more important for banks. We also document the impact of cumulative changes in prudential policies that differs depending on cycle conditions in the home countries of foreign-owned banks.

JEL Codes: F42, G18, G21.

 
Full article (PDF, 26 pages, 271 kb)

Online Appendix