@techreport{1aedf83e1ca544b5bc6dd56eb7c0b8a2,
title = "Supervising Cross-Border Banks: Theory, Evidence and Policy (Revised version of CentER Discussion Paper 2011-127)",
abstract = "Abstract: This paper analyzes the distortions that banks{\textquoteright} cross-border activities, such as foreign assets, deposits and equity, can introduce into regulatory interventions. We find that while each individual dimension of cross-border activities distorts the incentives of a domestic regulator, a balanced amount of cross-border activities does not necessarily cause inefficiencies, as the various distortions can offset each other. Empirical analysis using bank-level data from the recent crisis provide support to our theoretical findings. Specifically, banks with a higher share of foreign deposits and assets and a lower foreign equity share were intervened at a more fragile state, reflecting the distorted incentives of national regulators. We discuss several implications for the supervision of cross-border banks in Europe.",
keywords = "Bank regulation, bank resolution, cross-border banking",
author = "T.H.L. Beck and R.I. Todorov and W.B. Wagner",
note = "This is also EBC Discussion Paper 2012-015 Pagination: 43",
year = "2012",
language = "English",
volume = "2012-059",
series = "CentER Discussion Paper",
publisher = "Economics",
type = "WorkingPaper",
institution = "Economics",
}