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List of authors |
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|  | 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 |
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IJCB Home Read the journal Past issue
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International Banking and Cross-Border Effects of Regulation: Lessons from Portugal
by Diana Bonfim and Sónia Costa Banco de Portugal
Abstract
This paper offers a contribution to understand the crossborder
effects of bank regulation using data on Portuguese
banks. We find that the effect of foreign regulation on domestic
credit growth depends on the type of regulation, on the
channel of transmission, and on the legal form of the bank.
Our results show that a tightening in foreign regulation leads
to a decrease in the growth of domestic credit in the case
of concentration ratios and capital requirements and has the
opposite effect in the case of sector-specific capital buffers and
reserve requirements in foreign currencies. We also find significant
cross-border effects for the loan-to-value limits. In
this case, cross-border spillovers work in different ways for
domestic banks with international activity and for foreign
banks: after a tightening in this instrument abroad, domestic
banks decrease credit growth in Portugal while foreign banks
increase it. Finally, we show that the cross-border effects of
capital requirements work differently through branches and
subsidiaries.
JEL Codes: F42, G21, G28.
Full article (PDF, 37 pages, 391 kb)
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