scholarly journals Cross-Border Banking in Regulated Markets: Is Financial Integration Desirable?

2016 ◽  
Author(s):  
Andreas Haufler ◽  
Ian Wooton
Keyword(s):  
Financial Integration ◽  
Cross Border ◽  
Regulated Markets

Economic and financial integration and the rise of cross-border M&As

2011 ◽  
pp. 296-322 ◽  
Author(s):  
S. Brakman ◽  
G. Garita ◽  
H. Garretsen ◽  
C. Van Marrewijk
Keyword(s):  
Financial Integration ◽  
Cross Border

A Framework for Regional Banking Regulation in ASEAN

2020 ◽  
Vol 19 (3) ◽  
pp. 111-125
Author(s):  
Peter J. Morgan
Keyword(s):  
Capital Flows ◽  
Deposit Insurance ◽  
Financial Regulation ◽  
Financial Integration ◽  
Banking Regulation ◽  
Safety Net ◽  
Regional Level ◽  
Cross Border ◽  
Banking Institutions ◽  
Financial Safety Net

This paper argues that there is a role for regional-level institutions of banking regulation in the ASEAN region. This is particularly important in an environment of increasing financial integration and harmonization, including exposures to shocks from volatile capital flows and cross-border banking institutions. The paper examines four aspects of financial regulation: microprudential regulation, macroprudential regulation, resolution capacity and deposit insurance, and a financial safety net. The paper argues that EU regional banking regulation provides a useful reference point, but the lower degree of credit market openness in ASEAN implies that a more nuanced approach can be adopted, and makes specific recommendations.

Default of Systemically Important Financial Intermediaries: Short-term Stability versus Incentive Compatibility?

2013 ◽  
Vol 14 (1) ◽  
pp. 15-30 ◽  
Author(s):  
Andreas Dombret ◽  
André Ebner
Keyword(s):  
Financial Institutions ◽  
Financial Stability ◽  
Financial Integration ◽  
Incentive Compatibility ◽  
Financial Intermediaries ◽  
Entry And Exit ◽  
Short Term ◽  
Market Participants ◽  
Cross Border ◽  
Crucial Feature

Abstract Financial integration and globalization have acted as a major stimulus in the development of large, internationally operating banks, which not only provide cross-border services but also have a local presence. While these banks are themselves drivers of economic integration, they can pose serious threats to financial stability. Their size, interconnectedness and importance as providers of specific services mean that financial institutions can be too-systemic-to-fail (TSTF). Since the entry and exit of market participants is a crucial feature of well-functioning markets, the absence of any credible possibility of failure leads to serious distortions. This analysis gives an overview of the TSTF problem and discusses the challenges to be faced in establishing credible resolution regimes.

Why Don't Asians Invest in Asia? The Determinants of Cross-Border Portfolio Holdings

2009 ◽  
Vol 8 (3) ◽  
pp. 228-246 ◽  
Author(s):  
Alicia García-Herrero ◽  
Philip Wooldridge ◽  
Doo Yong Yang
Keyword(s):  
Financial Markets ◽  
Financial Integration ◽  
Emerging Market ◽  
Trade Flows ◽  
Asia Pacific ◽  
Portfolio Holdings ◽  
Cross Border ◽  
Advanced Industrial Economies ◽  
European Economies ◽  
Source Countries

This paper seeks to understand why Asian foreign investment is concentrated in financial markets outside of the region instead of in Asian markets. We analyze empirically the geographical composition of the cross-border portfolio holdings of more than 40 source countries. We compare these benchmark results with those of four subgroups: advanced industrial economies, emerging market economies, European economies, and Asia-Pacific economies. The lack of liquidity in Asian financial markets turns out to be one reason why Asian capital is invested predominantly outside the region, notwithstanding the short distances and large trade flows between Asian economies. Initiatives to improve the liquidity of Asian financial markets, therefore, may be a useful way to stimulate financial integration within the region.

Financial Integration and Banking Regulation: Cross-Border Lending in Germany

2009 ◽  
Author(s):  
Jarko Fidrmuc ◽  
Christa Hainz
Keyword(s):  
Financial Integration ◽  
Banking Regulation ◽  
Cross Border

No More Credit to Europe? Cross-Border Bank Lending, Financial Integration, and the Rebirth of the National Scale as a Credit Scorecard

10.1068/a4618 ◽  
2013 ◽  
Vol 45 (10) ◽  
pp. 2399-2419 ◽  
Author(s):  
David Bassens ◽  
Michiel van Meeteren ◽  
Ben Derudder ◽  
Frank Witlox
Keyword(s):  
Financial Integration ◽  
Bank Lending ◽  
National Scale ◽  
Cross Border

Quota Formula Review - Data Update and Further Considerations - Supplementary Information

Policy Papers ◽  
2012 ◽  
Vol 2012 (52) ◽  
Author(s):  
Keyword(s):  
Financial Integration ◽  
Supplementary Information ◽  
Related Data ◽  
Cross Border ◽  
International Financial Integration ◽  
Comprehensive Picture ◽  
Financial Interconnectedness ◽  
Data Update

This Annex presents additional staff work on financial interconnectedness. The analysis examines a possible methodology for constructing indicators of financial interconnectedness and related data issues. In addition, it presents some illustrative simulation results.This annex focuses on financial interconnectedness that takes into account the pattern and size of cross-border financial linkages and potentially provides a more comprehensive picture of a country’s international financial integration

scholarly journals Macroprudential ring-fencing

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Tomáš Konečný ◽  
Lukáš Pfeifer
Keyword(s):  
Financial Stability ◽  
Capital Mobility ◽  
Financial Integration ◽  
Banking Union ◽  
Policy Action ◽  
Content Type ◽  
Cross Border ◽  
Macroprudential Policies ◽  
Structural Capital ◽  
The Eu

Purpose This paper aims to focus on capital-related macroprudential policies in the context of recent policy discussions on the removal of barriers to the mobility of capital and liquidity of cross-border banks in the European Union (EU). Design/methodology/approach This study first discusses the link between financial stability and internal resource mobility of cross-border banks. Then, it examines past heterogeneity in structural capital buffers as key macroprudential capital instruments applied in the EU and relate them to costs of policy action, degree of foreign penetration and membership in the Banking Union. Findings Observed phase-in patterns of structural capital buffers in the EU are broadly consistent with costs of policy action, degree of foreign penetration and membership in the Banking Union as potential factors. The process of financial integration could be further enhanced through reduced uncertainty in the application of macroprudential policies that constrain capital mobility of cross-border banks. Originality/value This paper anchors macroprudential policies into a wider discussion on the mechanism and implications of ring-fencing in the EU over time. It discusses two policy areas, macroprudential policies and proposals for deeper financial integration, that share the same financial stability objective but tend to emphasize different implications of the mobility of capital and liquidity of cross-border banks in the EU. The study provides a discussion of potential implications of the recent adoption of the CRRII/CRDV legislation for future heterogeneity of macroprudential policies in the EU.

Can Cross-Border Funding Frictions Explain Financial Integration Reversals?

2021 ◽  
Author(s):  
Amir Akbari ◽  
Francesca Carrieri ◽  
Aytek Malkhozov
Keyword(s):  
Capital Flows ◽  
Stock Prices ◽  
Market Integration ◽  
Financial Integration ◽  
International Investment ◽  
Global Market ◽  
International Capital ◽  
Portfolio Holdings ◽  
Cross Border ◽  
Investment Barriers

Abstract We show that constraints on using leverage for foreign positions can act as an international investment barrier. Guided by an international CAPM with leverage constraints, we use observed stock prices to measure the variation in the magnitude and the implicit cost of such cross-border funding barriers. Our measure helps explain the dynamics of global market integration and, in particular, its reversals documented in the literature, but not explained by other international investment barriers. We confirm our results using alternative financial integration measures, international capital flows, and institutional portfolio holdings.

Cross Border M&A’s in ASEAN and India: A Comparative Critique

2020 ◽  
Vol 11 (2) ◽  
pp. 619
Author(s):  
Avin TIWARI ◽  
Gaurav SHUKLA ◽  
Suesh Kumar PANDEY
Keyword(s):  
Service Sector ◽  
Financial Integration ◽  
Decisive Role ◽  
The Philippines ◽  
Primary Objective ◽  
Economic Factors ◽  
The Past ◽  
Cross Border ◽  
Asean Countries ◽  
Select Region

Cross-border merger and acquisitions (hereinafter, M&A’s) have increased exponentially in Asia since the mid-1990s due to the liberalization of the economy, the deregulation of the service sector, privatization of state-owned public enterprises, and the relaxation of regulatory controls over cross-border M&A's. ASEAN economies and India are significant players in the global arena for cross-border M&A's, and thus, their importance cannot be undermined. Cross-border M&A's have distinctive implications on the socio-economic scenario of a Nation, and most importantly, it impacts substantial change in legal dimensions, involving compliance requirements, acquisition procedures, and tax liabilities. The present study is a doctrinal one; the primary objective being, a legislative frame analysis of select ASEAN countries and India with regards to cross-border M&A’s. The top five ASEAN countries, viz., Indonesia, Malaysia, the Philippines, Singapore, and Thailand were selected on account of the cross-border trade volume over the past decade. The authors applied comparative and analytical methods to pursue the research inquiry. The second objective was to ascertain the vital macro-economic factors playing a decisive role in the outcome of cross-border M&A’s in the select region. Here the authors highlighted the relationship between certain macro-economic factors like trade openness, financial integration, increased inflation, increased GDP, etc. which positively impact M&As. The third and final objective was to analyze the trends of cross border M&A’s in the select region for the past decade, i.e. 2008 to 2018, as this period perfectly encapsulates a complete economic cycle from depression to boom alongside major legal developments in the field of cross-border M&A’s around the world. Furthermore, while undergoing the study, the authors highlighted certain risk factors in terms of competition, transaction, and people with regards to cross border M&A’s in the select region. Findings from the study indicated that ASEAN economies have little experience in framing and enforcing competition policies, hence, a suitable policy to reduce risk is the immediate need of the hour.

Sign in / Sign up

Export Citation Format

Share Document