A bank's interest expenses rise with its degree of internationalization, measured by its share of foreign liabilities in total liabilities or a Herfindahl index of international liability concentration, especially if the bank is performing badly. The results in this paper suggest that an international bank's cost of funds raised through a foreign subsidiary is 1.5-2.4 percent higher than the cost of funds for a purely domestic bank. That is a sizeable...
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INFORMATION
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2012/01/01
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Document de travail de recherche sur les politiques
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WPS5947
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1
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1
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2012/01/01
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Disclosed
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Is the financial safety net a barrier to cross-border banking ?
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Finance & Private Sector Development