Spatial dependence via the internal capital markets of US global banks
D'Avino, C. and Shabani, M. 2023. Spatial dependence via the internal capital markets of US global banks. Journal of Money, Credit and Banking. In Press. https://doi.org/10.1111/jmcb.13101
|D'Avino, C. and Shabani, M.
In this paper we estimate the cross-border liquidity network created by US global banks via their internal capital markets to capture the spatial dependence or bilateral proximity between branches located in different countries. Results from dynamic spatial panel regressions indicate that the foreign branches in nearby countries show common lending patterns. A 1% increase in lending in branches in proximate locations is associated with an estimated increase of 0.25% in local lending. Further interdependencies are evidenced by the positive liquidity and monetary policy spillovers on local lending, with marginal spatial effects estimated to be around 1.11% and 0.14%, respectively.
|Journal of Money, Credit and Banking
|Wiley for The Ohio State University
|Accepted author manuscript
File Access Level
|Digital Object Identifier (DOI)
|18 Oct 2023
|Publication process dates
|09 Oct 2023
|10 Oct 2023
|© 2023, Wiley
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This is the peer reviewed version of the following article: D'Avino, C. and Shabani, M. 2023. Spatial dependence via the internal capital markets of US global banks. Journal of Money Banking and Credit. In press., which will be published in final form at https://onlinelibrary.wiley.com/doi/full/10.1111/jmcb.13101
Accepted author manuscript
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