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International Banking and Cross-Border Effects of Regulation: Lessons from Italy

Author

Listed:
  • Marianna Caccavaio

    (Banca d’Italia)

  • Luisa Carpinelli

    (Banca d’Italia)

  • Giuseppe Marinelli

    (Banca d’Italia)

Abstract

In this paper we study how foreign lending by Italian banks adjust to prudential policy changes of destination markets over the period 2000–14. We find a positive prudential spillover effect: Italian banks tend to lend more to countries that tighten a prudential measure. The impact is not very large nevertheless, and it is driven by cross-border lending and lending by hosted branches that are not directly affected by the changes in regulations. This evidence highlights the need for international cooperation among authorities.

Suggested Citation

  • Marianna Caccavaio & Luisa Carpinelli & Giuseppe Marinelli, 2017. "International Banking and Cross-Border Effects of Regulation: Lessons from Italy," International Journal of Central Banking, International Journal of Central Banking, vol. 13(2), pages 223-247, March.
    • Handle: RePEc:ijc:ijcjou:y:2017:q:1:a:8
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    References listed on IDEAS

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    1. Claudia M Buch & Linda S Goldberg, 2017. "Cross-Border Prudential Policy Spillovers: How Much? How Important? Evidence from the International Banking Research Network," International Journal of Central Banking, International Journal of Central Banking, vol. 13(2), pages 505-558, March.
    2. Claudia M. Buch & Matthieu Bussière, & Linda Goldberg, 2017. "International Prudential Policy Spillovers: Evidence from the International Banking Research Network," International Journal of Central Banking, International Journal of Central Banking, vol. 13(2), pages 1-4, March.
    3. Eugenio Cerutti & Ricardo Correa & Elisabetta Fiorentino & Esther Segalla, 2017. "Changes in Prudential Policy Instruments - A New Cross-Country Database," International Journal of Central Banking, International Journal of Central Banking, vol. 13(2), pages 477-503, March.
    4. Marianna Caccavaio & Luisa Carpinelli & Giuseppe Marinelli & Enrico Sette, 2015. "International Banking and Liquidity Risk Transmission: Evidence from Italy," IMF Economic Review, Palgrave Macmillan;International Monetary Fund, vol. 63(3), pages 568-584, November.
    5. Ignazio Visco, 2011. "Key issues for the success of macroprudential policies," BIS Papers chapters, in: Bank for International Settlements (ed.), Macroprudential regulation and policy, volume 60, pages 129-135, Bank for International Settlements.
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    Cited by:

    1. Jana Ohls & Marcus Pramor & Lena Tonzer, 2017. "International Banking and Cross-Border Effects of Regulation: Lessons from Germany," International Journal of Central Banking, International Journal of Central Banking, vol. 13(2), pages 129-162, March.
    2. Claudia M Buch & Linda S Goldberg, 2017. "Cross-Border Prudential Policy Spillovers: How Much? How Important? Evidence from the International Banking Research Network," International Journal of Central Banking, International Journal of Central Banking, vol. 13(2), pages 505-558, March.
    3. Jose M Berrospide & Ricardo Correa & Linda S Goldberg & Friederike Niepmann, 2017. "International Banking and Cross-Border Effects of Regulation: Lessons from the United States," International Journal of Central Banking, International Journal of Central Banking, vol. 13(2), pages 435-476, March.
    4. Buesa, Alejandro & De Quinto, Alicia & Población, Javier, 2022. "Risky mortgages, credit shocks and cross-border spillovers," International Review of Economics & Finance, Elsevier, vol. 80(C), pages 717-733.
    5. Stefan Avdjiev & Cathérine Koch & Patrick McGuire & Goetz von Peter, 2017. "International Prudential Policy Spillovers: A Global Perspective," International Journal of Central Banking, International Journal of Central Banking, vol. 13(2), pages 5-33, March.
    6. Jon Frost & Jakob de Haan & Neeltje van Horen, 2017. "International Banking and Cross-Border Effects of Regulation: Lessons from the Netherlands," International Journal of Central Banking, International Journal of Central Banking, vol. 13(2), pages 293-313, March.
    7. Diana Bonfim & Sónia Costa, 2017. "International Banking and Cross-Border Effects of Regulation: Lessons from Portugal," International Journal of Central Banking, International Journal of Central Banking, vol. 13(2), pages 341-377, March.
    8. Alejandro Jara & Luis Cabezas, 2017. "International Banking and Cross-Border Effects of Regulation: Lessons from Chile," International Journal of Central Banking, International Journal of Central Banking, vol. 13(2), pages 95-127, March.

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