Global banking and the international transmission of shocks: A quantitative analysis

• 成果类型: Article
• 署名作者: Fillat, Jose L.; Garetto, Stefania; Corea-Smith, Arthur, V
• 署名单位: Federal Reserve System - USA; Federal Reserve Bank - Boston; Boston University; National Bureau of Economic Research; Centre for Economic Policy Research - UK; Cornerstone Research
• 刊物名称: JOURNAL OF INTERNATIONAL ECONOMICS
• ISSN/ISSBN: 0022-1996
• DOI: 10.1016/j.jinteco.2023.103808
• 发表日期: 2023
• 关键词: Global banks; banking regulation; Shock transmission

摘要

Regulatory reforms typically follow financial crises. We propose a model of global banking that can be used proactively to study alternative regulatory policies. The model mimics the US reg-ulatory framework and highlights the organizational choices that banks face when entering a foreign market: branching versus subsidiarization. The model is able to replicate the response of the US banking sector to the European sovereign debt crisis. Counterfactual analysis suggests that pervasive subsidiarization, higher capital requirements, or an ad hoc monetary policy intervention would have avoided entirely the negative effects of the sovereign debt crisis on US lending. However, the same measures would have had limited effects in more severe scenarios.(c) 2023 Elsevier B.V. All rights reserved.