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dc.contributor.authorBöninghausen, Benjaminen_US
dc.contributor.authorKöhler, Matthiasen_US
dc.date.accessioned2012-11-05en_US
dc.date.accessioned2012-11-05T12:30:48Z-
dc.date.available2012-11-05T12:30:48Z-
dc.date.issued2012en_US
dc.identifier.isbn978-3-86558-856-2en_US
dc.identifier.urihttp://hdl.handle.net/10419/65861-
dc.description.abstractThis paper examines the international credit portfolios of German banks. We construct a bank-country panel from a unique dataset for a representative set of countries and ask why banks leave diversification opportunities unexploited in some countries. Controlling for bank heterogeneity, we analyse the deviations of actual portfolios from a mean-variance based benchmark and their country-level determinants. Our results show that banking regulations are important determinants of the credit allocation of German banks. We present robust evidence that countries with stricter capital adequacy and entry requirements tend to be overweighted, primarily due to excess profits resulting from a lower level of banking market competition. German banks also overweight countries with larger and more developed banking markets. Moreover, we find support that German banks follow their domestic customers abroad to maintain existing lending relationships. Geographical factors, in contrast, do not seem to matter. Our findings suggest that changes in and convergence of banking regulations as well as financial deepening of banking sectors around the world may, in the long term, result in banks holding more diversified international credit portfolios.en_US
dc.language.isoengen_US
dc.publisherDt. Bundesbank Frankfurt am Mainen_US
dc.relation.ispartofseriesDiscussion Paper, Deutsche Bundesbank 28/2012en_US
dc.subject.jelG21en_US
dc.subject.jelG11en_US
dc.subject.jelF36en_US
dc.subject.jelF21en_US
dc.subject.ddc330en_US
dc.subject.keywordinternational bankingen_US
dc.subject.keywordinternational financial integrationen_US
dc.subject.keywordportfolio choiceen_US
dc.titleDiversification and determinants of international credit portfolios: Evidence from German banksen_US
dc.typeWorking Paperen_US
dc.identifier.ppn729177734en_US
dc.rightshttp://www.econstor.eu/dspace/Nutzungsbedingungenen_US
dc.identifier.repecRePEc:zbw:bubdps:282012-
Appears in Collections:Discussion Papers, Deutsche Bundesbank

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