Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/246713 
Year of Publication: 
2021
Series/Report no.: 
ADB Economics Working Paper Series No. 636
Publisher: 
Asian Development Bank (ADB), Manila
Abstract: 
Cross-border bank positions in Asia and the Pacific remain highly concentrated to few counterparties, exposing the region to financial risks and policy spillovers. Consequently, assessing the determinants and impacts of the region's cross-border banking concentration is relevant to the design of appropriate policies for promoting financial development and safeguarding financial stability. To this end, we construct cross-border bank concentration measures for 47 economies in Asia and the Pacific from 2000 to 2019. The results show that higher openness of capital account and trade, as well as better 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. We find no impact on bank profitability for the region.
Subjects: 
Asia and the Pacific
bank profitability
credit growth
cross-border bank concentration
cross-border bank exposures
nonperforming loans
JEL: 
E44
F36
G21
O16
Persistent Identifier of the first edition: 
Creative Commons License: 
cc-by Logo
Document Type: 
Working Paper

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