Determinants and dynamics of the geography of global banking: The role of economic, cultural and political factors.

点击翻译按钮获取中文摘要

Cross-border banking has increased dramatically, yet the determinants and dynamics of bilateral cross-border activities are not fully understood. Recent research shows that geographical distance matters even for “weightless” banking products and is thus producing an economic geography. However, distance is only an imperfect proxy for all informational, transactional, political, regulatory and cultural frictions which act as barriers to integration. This project aims at an in-depth analysis of the determinants and dynamics of cross-border banking. The project will utilize two exclusive and confidential data sets and thus provide new insights in three important ways. Firstly, by focussing on global bilateral cross-border banking, banking geography can be investigated with a specific focus on (de)regulation and integration policies including the role of currency unions. Secondly, complementary to this macro-analysis a micro-analysis will be conducted using Dutch disaggregated bank-level data to highlight the role of different banking market characteristics. Thirdly, the insights obtained from these two sub-studies will be utilized for an in-depth analysis of cross-border banking with respect to the current financial crisis. Overall, the project will provide a deeper understanding of the driving forces of globalization in banking and will thus be of significant guidance to policy makers concerned with financial market integration, currency unions and financial market stability.