Regulatory arbitrage and loan location decisions by multinational banks

• 成果类型: Article
• 署名作者: Demirguec-Kunt, Asli; Horvath, Balint L.; Huizinga, Harry
• 署名单位: University of Arizona; Tilburg University
• 刊物名称: JOURNAL OF INTERNATIONAL ECONOMICS
• ISSN/ISSBN: 0022-1996
• DOI: 10.1016/j.jinteco.2023.103840
• 发表日期: 2023
• 关键词: regulatory arbitrage; Capital regulations; Loan origination

摘要

This paper examines the impact of international differences in capital regulation on multinational banks' loan origination location decisions. International loan location decisions represent a key banking margin that has previously not been examined in the literature on regulatory arbitrage by banks. Our estimation relies on within-loan contribution variation in location options for individual multinational banks that participate in a syndicated loan. We examine how the loan location choice and the intensity of regulatory arbitrage are affected by borrower transparency. We find that greater borrower transparency to a local bank establishment makes loan location at this establishment more likely, and that regulatory arbitrage is more intense in the case of more transparent borrowers.