Determinants and dynamics of the geography of global banking: The role of economic, cultural and political factors.
Final Report Abstract
The project has aimed at exploring the determinants of the changing geography of global banking. By utilizing a confidential dataset the role of regional integration schemes, financial crises, and cultural biases have been investigated. The project was joint work with Dr. Stefanie Kleimeier from the University of Maastricht under the patronage of the DFG-NWO Cooperation Program. The major research results have been published in international peer refereed journals. The study "E(M)U Effects in Global Cross-Border Banking", demonstrates that the European Monetary Union (EMU) increases cross-border depositing but not lending among EMU countries by 31%. While being a member of the European Union (EU) increases cross-border loans by 49%, cross-border deposit volumes are unaffected. It is also shown that these effects differ from those non-European regional integration schemes. The paper "Financial Crises and Cross-Border Banking: New Evidence", provides an in-depth analysis of the reaction of cross-border deposits and loans to banking, currency and twin crises and shows that each crisis type has its own specific effects, that these effects themselves lead to sustained increases in cross-border banking, and that they are different for cross-border loans and deposits, respectively. In a working paper we explore the Resurgence of Cultural Borders in International Finance during the Financial Crisis. The study has been submitted to an international journal and is currently under review. The overall outcome of the research project has been reflected on in a paper titled "Cross-Border Retail Banking: Exploring the Unknown Financial Globalization in Times of Financial Crises". Finally the project has been concluded with a symposium on Global Banking, Financial Stability, and Post-Crisis Policy Challenges held on February 1, 2013 at the University of Maastricht, financially supported by the Dutch NWO. A special issue on the symposium has been published by Comparative Economic Studies, comprising five papers emanating from the symposium plus an introduction by the project leaders.
Publications
- E(M]U Effects in Global Cross-Border Banking. Financial Management Association Annual Conference, New York, October, 20, 2010
H. Sander
- Overcoming Cultural Borders in International Exchange: Evidence from Euro-Zone Cross-Border Depositing. INFINITY Conference 2010 on International Finance, Dublin, Trinity College, June 14-15, 2010
H. Sander, S. Heuchemer and S. Kleimeier
- Financial Crises and Cross-Border Banking: New Evidence. 9th INFINITI Conference on International Finance, Dublin, June 2011
H. Sander
- Cross-Border Retail Banking: Exploring the Unknown Financial Globalization in Times of Financial Crises, Credit and Capital Markets (Kredit und Kapital), 46(2), 2013, 247-274
H. Sander, S. Kleimeier
- E(M)U Effects in Global Cross-Border Banking, Economics Letters 118(1), 2013, 91-93
H. Sander, S. Kleimeier und S. Heuchemer
- Financial Crises and Cross-Border Banking: New Evidence, Journal of International Money and Finance 32, (2013), 884-915
H. Sander, S. Kleimeier und S. Heuchemer
- Introduction: Global Banking, Financial Stability, and Post-Crisis Policy Challenges Symposium, Comparative Economic Studies, Vol. 56. 2014, pp. 253-25.
Harald Sander and Stefanie Kleimeier
(See online at https://dx.doi.org/10.1057/ces.2014.19)
