Arbeitspapier
Do banks benefit from internationalization? Revisiting the market power-risk nexus
Recent developments on international financial markets have called the benefits of bank globalization into question. Large, internationally active banks have acquired substantial market power, and international activities have not necessarily made banks less risky. Yet, surprisingly little is known about the actual link between bank internationalization, bank risk, and market power. Analyzing this link is the purpose of this paper. We jointly estimate the determinants of risk and market power of banks, and we analyze the effects of changes in terms of the number of foreign countries (the extensive margin) and the volume of foreign assets (the intensive margin). Our paper has four main findings. First, there is a strong negative feedback effect between risk and market power. Second, banks with higher shares of foreign assets, in particular those held through foreign branches, have higher market power at home. Third, holding assets in a large number of foreign countries tends to increase bank risk. Fourth, the impact of internationalization differs across banks from different banking groups and of different size.
- ISBN
-
978-3-86558-649-0
- Sprache
-
Englisch
- Erschienen in
-
Series: Discussion Paper Series 2 ; No. 2010,09
- Klassifikation
-
Wirtschaft
Banks; Depository Institutions; Micro Finance Institutions; Mortgages
- Thema
-
market power-risk nexus
international banking
micro-data
Germany
Internationale Bank
Marktmacht
Bankrisiko
Bankgeschäft
Globalisierung
Schätzung
Deutschland
- Ereignis
-
Geistige Schöpfung
- (wer)
-
Buch, Claudia M.
Koch, Cathérine Tahmee
Koetter, Michael
- Ereignis
-
Veröffentlichung
- (wer)
-
Deutsche Bundesbank
- (wo)
-
Frankfurt a. M.
- (wann)
-
2010
- Handle
- Letzte Aktualisierung
-
10.03.2025, 11:43 MEZ
Datenpartner
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. Bei Fragen zum Objekt wenden Sie sich bitte an den Datenpartner.
Objekttyp
- Arbeitspapier
Beteiligte
- Buch, Claudia M.
- Koch, Cathérine Tahmee
- Koetter, Michael
- Deutsche Bundesbank
Entstanden
- 2010
Ähnliche Objekte (12)
Gustav von Schmoller-Vorlesung, 5. Konferenz für Sozial- und Wirtschaftsdaten: Die Internationalisierung deutscher Banken und Unternehmen aus Perspektive der Mikrodaten
Opening up for foreign banks: Why Central and Eastern Europe can benefit
Barriers to internationalization: Firm-level evidence from Germany
What Determines Maturity? An Analysis for Foreign Assets of German Commercial Banks
Information or Regulation: What Is Driving the International Activities of Commercial Banks?
Grußwort
The great risk shift?: income volatility in an international perspective
Business Cycle Volatility and Globalization: A Survey
Financial Market Integration in a Monetary Union
Openness and income disparities: does trade explain the "Mezzogiorno effect"?
Distance and International Banking
Perspektiven für Forschung und Politikberatung am IWH - Antrittsrede der Präsidentin anlässlich der Amtseinführung
Gustav von Schmoller-Vorlesung, 5. Konferenz für Sozial- und Wirtschaftsdaten: Die Internationalisierung deutscher Banken und Unternehmen aus Perspektive der Mikrodaten
Opening up for foreign banks: Why Central and Eastern Europe can benefit
Barriers to internationalization: Firm-level evidence from Germany
What Determines Maturity? An Analysis for Foreign Assets of German Commercial Banks
Information or Regulation: What Is Driving the International Activities of Commercial Banks?
Grußwort
The great risk shift?: income volatility in an international perspective
Business Cycle Volatility and Globalization: A Survey
Financial Market Integration in a Monetary Union
Openness and income disparities: does trade explain the "Mezzogiorno effect"?
Distance and International Banking
Perspektiven für Forschung und Politikberatung am IWH - Antrittsrede der Präsidentin anlässlich der Amtseinführung
Gustav von Schmoller-Vorlesung, 5. Konferenz für Sozial- und Wirtschaftsdaten: Die Internationalisierung deutscher Banken und Unternehmen aus Perspektive der Mikrodaten
Opening up for foreign banks: Why Central and Eastern Europe can benefit
Barriers to internationalization: Firm-level evidence from Germany
What Determines Maturity? An Analysis for Foreign Assets of German Commercial Banks
Information or Regulation: What Is Driving the International Activities of Commercial Banks?
Grußwort
The great risk shift?: income volatility in an international perspective
Business Cycle Volatility and Globalization: A Survey
Financial Market Integration in a Monetary Union
Openness and income disparities: does trade explain the "Mezzogiorno effect"?
Distance and International Banking