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dc.contributor.authorBuch, Claudia M.en_US
dc.contributor.authorKoch, Cathérine Tahmeeen_US
dc.contributor.authorKoetter, Michaelen_US
dc.date.accessioned2010-11-08T11:20:14Z-
dc.date.available2010-11-08T11:20:14Z-
dc.date.issued2010en_US
dc.identifier.isbn978-3-86558-649-0en_US
dc.identifier.urihttp://hdl.handle.net/10419/41457-
dc.description.abstractRecent developments on international financial markets have called the benefits of bank globalization into question. Large, internationally active banks have acquired substantial market power, and international activities have not necessarily made banks less risky. Yet, surprisingly little is known about the actual link between bank internationalization, bank risk, and market power. Analyzing this link is the purpose of this paper. We jointly estimate the determinants of risk and market power of banks, and we analyze the effects of changes in terms of the number of foreign countries (the extensive margin) and the volume of foreign assets (the intensive margin). Our paper has four main findings. First, there is a strong negative feedback effect between risk and market power. Second, banks with higher shares of foreign assets, in particular those held through foreign branches, have higher market power at home. Third, holding assets in a large number of foreign countries tends to increase bank risk. Fourth, the impact of internationalization differs across banks from different banking groups and of different size.en_US
dc.language.isoengen_US
dc.publisherDeutsche Bundesbank Frankfurt am Mainen_US
dc.relation.ispartofseriesDiscussion Paper Series 2: Banking and Financial Studies 2010,09en_US
dc.subject.jelF3en_US
dc.subject.jelG21en_US
dc.subject.ddc330en_US
dc.subject.keywordmarket power-risk nexusen_US
dc.subject.keywordinternational bankingen_US
dc.subject.keywordmicro-dataen_US
dc.subject.keywordGermanyen_US
dc.subject.stwInternationale Banken_US
dc.subject.stwMarktmachten_US
dc.subject.stwBankrisikoen_US
dc.subject.stwBankgeschäften_US
dc.subject.stwGlobalisierungen_US
dc.subject.stwSchätzungen_US
dc.subject.stwDeutschlanden_US
dc.titleDo banks benefit from internationalization? Revisiting the market power-risk nexusen_US
dc.typeWorking Paperen_US
dc.identifier.ppn638117801en_US
dc.rightshttp://www.econstor.eu/dspace/Nutzungsbedingungenen_US
dc.identifier.repecRePEc:zbw:bubdp2:201009-
Appears in Collections:Discussion Paper Series 2: Banking and Financial Studies, Deutsche Bundesbank

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