{"id":1446,"date":"2023-02-13T16:19:17","date_gmt":"2023-02-13T16:19:17","guid":{"rendered":"https:\/\/www.fiw.ac.at\/publications\/the-role-of-regulatory-arbitrage-in-u-s-banks-international-lending-flows-bank-level-evidence\/"},"modified":"2023-02-13T16:19:17","modified_gmt":"2023-02-13T16:19:17","slug":"the-role-of-regulatory-arbitrage-in-u-s-banks-international-lending-flows-bank-level-evidence","status":"publish","type":"publication","link":"https:\/\/www.fiw.ac.at\/en\/publications\/the-role-of-regulatory-arbitrage-in-u-s-banks-international-lending-flows-bank-level-evidence\/","title":{"rendered":"The Role of Regulatory Arbitrage in U.S. Banks\u2019 International Lending Flows: Bank-Level Evidence"},"content":{"rendered":"\nThis paper examines how cross-border differences in the stringency of bank regulations affect U.S. banks\u2019 international activities. The analysis relies on a unique bank-level dataset on the globally most active U.S. banks\u2019 balance sheet as well as their cross-border, foreign affiliate lending and foreign market entry choices in 82 foreign countries in the 2003-2013 period. Results show that U.S. banks are significantly more likely to enter foreign markets with relatively laxer bank capital and disclosure requirements, and exit foreign markets with relatively stricter deposit insurance schemes and more restrictions on activities. Banks substitute away from foreign affiliate lending (via subsidiaries in the foreign country) towards cross-border lending (originating from the U.S.) in foreign countries with more powerful and independent bank regulators and limits on activities.\n\n","protected":false},"featured_media":0,"menu_order":0,"template":"","jelcode":[590,482,596],"keyword":[600,598,599,597],"class_list":["post-1446","publication","type-publication","status-publish","hentry","jelcode-f3","jelcode-f4","jelcode-g2","keyword-balance-sheet-effects","keyword-cross-border-regulatory-arbitrage","keyword-foreign-market-entry-and-exit","keyword-international-bank-lending"],"acf":{"year":2015,"month":3,"day":"","volume":"","number":"151","pages":41,"reviewed":"0","citeid":"FIW_WP_151","fiwseries":"FIW Working Papers","event":null},"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v23.4 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>The Role of Regulatory Arbitrage in U.S. Banks\u2019 International Lending Flows: Bank-Level Evidence - FIW<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.fiw.ac.at\/en\/publications\/the-role-of-regulatory-arbitrage-in-u-s-banks-international-lending-flows-bank-level-evidence\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"The Role of Regulatory Arbitrage in U.S. Banks\u2019 International Lending Flows: Bank-Level Evidence - FIW\" \/>\n<meta property=\"og:description\" content=\"This paper examines how cross-border differences in the stringency of bank regulations affect U.S. banks\u2019 international activities. The analysis relies on a unique bank-level dataset on the globally most active U.S. banks\u2019 balance sheet as well as their cross-border, foreign affiliate lending and foreign market entry choices in 82 foreign countries in the 2003-2013 period. [&hellip;]\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.fiw.ac.at\/en\/publications\/the-role-of-regulatory-arbitrage-in-u-s-banks-international-lending-flows-bank-level-evidence\/\" \/>\n<meta property=\"og:site_name\" content=\"FIW\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.fiw.ac.at\/wp-content\/uploads\/2023\/03\/wifo_fiw_logo_short_rgb.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"843\" \/>\n\t<meta property=\"og:image:height\" content=\"293\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:site\" content=\"@CentreFiw\" \/>\n<meta name=\"twitter:label1\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data1\" content=\"1 minute\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.fiw.ac.at\/en\/publications\/the-role-of-regulatory-arbitrage-in-u-s-banks-international-lending-flows-bank-level-evidence\/\",\"url\":\"https:\/\/www.fiw.ac.at\/en\/publications\/the-role-of-regulatory-arbitrage-in-u-s-banks-international-lending-flows-bank-level-evidence\/\",\"name\":\"The Role of Regulatory Arbitrage in U.S. Banks\u2019 International Lending Flows: Bank-Level Evidence - FIW\",\"isPartOf\":{\"@id\":\"https:\/\/www.fiw.ac.at\/en\/#website\"},\"datePublished\":\"2023-02-13T16:19:17+00:00\",\"dateModified\":\"2023-02-13T16:19:17+00:00\",\"breadcrumb\":{\"@id\":\"https:\/\/www.fiw.ac.at\/en\/publications\/the-role-of-regulatory-arbitrage-in-u-s-banks-international-lending-flows-bank-level-evidence\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/www.fiw.ac.at\/en\/publications\/the-role-of-regulatory-arbitrage-in-u-s-banks-international-lending-flows-bank-level-evidence\/\"]}]},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\/\/www.fiw.ac.at\/en\/publications\/the-role-of-regulatory-arbitrage-in-u-s-banks-international-lending-flows-bank-level-evidence\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Startseite\",\"item\":\"https:\/\/www.fiw.ac.at\/en\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Publications\",\"item\":\"https:\/\/www.fiw.ac.at\/en\/publications\/\"},{\"@type\":\"ListItem\",\"position\":3,\"name\":\"The Role of Regulatory Arbitrage in U.S. Banks\u2019 International Lending Flows: Bank-Level Evidence\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/www.fiw.ac.at\/en\/#website\",\"url\":\"https:\/\/www.fiw.ac.at\/en\/\",\"name\":\"FIW\",\"description\":\"\",\"publisher\":{\"@id\":\"https:\/\/www.fiw.ac.at\/en\/#organization\"},\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\/\/www.fiw.ac.at\/en\/?s={search_term_string}\"},\"query-input\":{\"@type\":\"PropertyValueSpecification\",\"valueRequired\":true,\"valueName\":\"search_term_string\"}}],\"inLanguage\":\"en-US\"},{\"@type\":\"Organization\",\"@id\":\"https:\/\/www.fiw.ac.at\/en\/#organization\",\"name\":\"FIW\",\"url\":\"https:\/\/www.fiw.ac.at\/en\/\",\"logo\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/www.fiw.ac.at\/en\/#\/schema\/logo\/image\/\",\"url\":\"https:\/\/www.fiw.ac.at\/wp-content\/uploads\/2023\/03\/wifo_fiw_logo_kugel_rgb.png\",\"contentUrl\":\"https:\/\/www.fiw.ac.at\/wp-content\/uploads\/2023\/03\/wifo_fiw_logo_kugel_rgb.png\",\"width\":843,\"height\":843,\"caption\":\"FIW\"},\"image\":{\"@id\":\"https:\/\/www.fiw.ac.at\/en\/#\/schema\/logo\/image\/\"},\"sameAs\":[\"https:\/\/x.com\/CentreFiw\"]}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"The Role of Regulatory Arbitrage in U.S. Banks\u2019 International Lending Flows: Bank-Level Evidence - FIW","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/www.fiw.ac.at\/en\/publications\/the-role-of-regulatory-arbitrage-in-u-s-banks-international-lending-flows-bank-level-evidence\/","og_locale":"en_US","og_type":"article","og_title":"The Role of Regulatory Arbitrage in U.S. Banks\u2019 International Lending Flows: Bank-Level Evidence - FIW","og_description":"This paper examines how cross-border differences in the stringency of bank regulations affect U.S. banks\u2019 international activities. 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