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Banking regulation and the changing geography of off-balance sheet activities

Author

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  • Carmela d'Avino

    (UEL - University of East London)

Abstract

This paper investigates whether the substitute compliance framework under the new US regime for over-the-counter derivatives has stimulated regulatory arbitrage. Results point to increased post-regulatory concentration in exposure in those countries in which US banks comply with local derivative regulation.

Suggested Citation

  • Carmela d'Avino, 2017. "Banking regulation and the changing geography of off-balance sheet activities," Post-Print hal-01893460, HAL.
    • Handle: RePEc:hal:journl:hal-01893460
    Note: View the original document on HAL open archive server: https://hal.science/hal-01893460
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    References listed on IDEAS

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    1. Loon, Yee Cheng & Zhong, Zhaodong (Ken), 2016. "Does Dodd-Frank affect OTC transaction costs and liquidity? Evidence from real-time CDS trade reports," Journal of Financial Economics, Elsevier, vol. 119(3), pages 645-672.
    2. Santiago Carbo‐Valverde & Edward J. Kane & Francisco Rodriguez‐Fernandez, 2012. "Regulatory Arbitrage in Cross‐Border Banking Mergers within the EU," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 44(8), pages 1609-1629, December.
    3. Joel F. Houston & Chen Lin & Yue Ma, 2012. "Regulatory Arbitrage and International Bank Flows," Journal of Finance, American Finance Association, vol. 67(5), pages 1845-1895, October.
    4. Alexey Artamonov, 2015. "Cross-Border Application of OTC Derivatives Rules: Revisiting the Substituted Compliance Approach," Journal of Financial Regulation, Oxford University Press, vol. 1(2), pages 206-225.
    5. Benos, Evangelos & Payne, Richard & Vasios, Michalis, 2020. "Centralized Trading, Transparency, and Interest Rate Swap Market Liquidity: Evidence from the Implementation of the Dodd–Frank Act," Journal of Financial and Quantitative Analysis, Cambridge University Press, vol. 55(1), pages 159-192, February.
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    Cited by:

    1. D'Avino, Carmela, 2018. "Quantitative easing, global banks and the international bank lending channel," Economic Modelling, Elsevier, vol. 71(C), pages 234-246.

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    More about this item

    Keywords

    US banks; interest rate swaps; derivatives regulation;
    All these keywords.

    JEL classification:

    • F33 - International Economics - - International Finance - - - International Monetary Arrangements and Institutions
    • G15 - Financial Economics - - General Financial Markets - - - International Financial Markets
    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages

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