Date: 2019
Type: Article
Few large with many small : banks size distribution and cross-border financial linkages
Journal of financial services research, 2019, Vol. 56, No. 3, pp. 229–258
BARBA NAVARETTI, Giorgio, CALZOLARI, Giacomo, POZZOLO, Alberto Franco, TRENTINAGLIA DE DAVERIO, Maria Teresa, Few large with many small : banks size distribution and cross-border financial linkages, Journal of financial services research, 2019, Vol. 56, No. 3, pp. 229–258
- https://hdl.handle.net/1814/65856
Retrieved from Cadmus, EUI Research Repository
We estimate the effect of the distribution of banks by asset size on a country’s propensity to engage in cross-border banking. Countries where the distribution of banks by asset size is more skewed to the right (with few large and many small banks) lend more abroad and are recipients of more funds from foreign banks. This is consistent with the fact that large banks, with easier access to the international financial markets, act as a hub for smaller banks and at the same time stand out as safer too-big-to fail counterparts for foreign partners.
Additional information:
First published online: 15 November 2019
Cadmus permanent link: https://hdl.handle.net/1814/65856
Full-text via DOI: 10.1007/s10693-019-00325-5
ISSN: 0920-8550; 1573-0735
Publisher: Springer
