Supervisory cooperation and regulatory arbitrage

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dc.contributor.authorBECK, Thorsten Harald Leopold
dc.date.accessioned2025-01-31T15:55:00Z
dc.date.available2025-01-31T15:55:00Z
dc.date.issued2024
dc.descriptionPublished online: 14 November 2024en
dc.description.abstractWhile bank supervisors frequently cooperate across countries, novel data on 268 cooperation agreements reveal that such cooperation falls short of covering the global operations of large banking groups. We show that this causes material regulatory arbitrage: banking groups allocate lending activities and risk into third-country subsidiaries when cooperation agreements cover their operations in other countries. The average distortion in a country’s foreign lending caused by regulatory arbitrage is 21 percent, with the effect being magnified in the presence of a weak supervisory framework. Taken together, our results indicate that incompleteness in cooperation substantially diminishes its global effectiveness.en
dc.embargo.terms2026-11-14en
dc.format.mimetypeapplication/pdfen
dc.identifier.citationReview of finance, 2024, Art. rfae041, OnlineFirsten
dc.identifier.doi10.1093/rof/rfae041
dc.identifier.issn1572-3097
dc.identifier.issn1875-824X
dc.identifier.otherrfae041
dc.identifier.urihttps://hdl.handle.net/1814/77908
dc.language.isoenen
dc.orcid.uploadtrue*
dc.publisherOxford University Pressen
dc.relation.ispartofReview of financeen
dc.rightsinfo:eu-repo/semantics/embargoedAccessen
dc.titleSupervisory cooperation and regulatory arbitrageen
dc.typeArticleen
dspace.entity.typePublication
person.identifier.other45508
relation.isAuthorOfPublicatione5eb7c26-0581-4333-9977-d261c87c02b7
relation.isAuthorOfPublication.latestForDiscoverye5eb7c26-0581-4333-9977-d261c87c02b7
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