Concentration in Asia’s Cross-Border Banking: Determinants and Impacts

Publication | May 2021
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This study assesses the determinants and impacts of cross-border banking concentration in 47 economies in Asia and the Pacific from 2000 to 2019.

Cross-border bank positions in Asia and the Pacific remain highly concentrated to a few counterparties, exposing the region to financial risks and policy spillovers. This study constructs and analyzes cross-border bank concentration measures for the 47 economies. Results suggest that higher capital account, trade openness, and per capita income are significantly associated with lower cross-border bank concentration. Moreover, elevated cross-border bank concentration tends to lower domestic credit growth and nonperforming loans. The paper discusses policy implications for Asia and the Pacific.

Contents

  • Abstract
  • Introduction
  • Cross-Border Bank Concentration: Construction and Stylized Facts
  • Empirical Specifications
  • Empirical Results
  • Concluding Remarks and Policy Considerations
  • Appendixes

Additional Details

Authors
Type
Series
Subjects
  • Economics
  • Finance sector development
  • Financial markets and institutions
Pages
  • 40
Dimensions
  • 8.5 x 11
SKU
  • WPS210170-2
ISSN
  • 2313-5867 (print)
  • 2313-5875 (electronic)

Published Version

Lapid, Ana Kristel, Rogelio Mercado Jr., and Peter Rosenkranz . 2023. "Concentration in Asia’s Cross-Border Banking: Determinants and Impacts." Pacific Economic Review 28 (2): 267–92. https://doi.org/10.1111/1468-0106.12399.

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