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Information or Regulation: What Drives the International Activities of Commercial Banks?
- Journal of Money, Credit, and Banking
- The Ohio State University Press
- Volume 35, Number 6 (Part 1), December 2003
- pp. 851-869
- 10.1353/mcb.2003.0042
- Review
- Additional Information
Information costs and regulatory barriers distinguish international financial markets from national ones. Using panel data on bilateral assets and liabilities of commercial banks, I empirically determine the impact of information, costs and regulations, and I isolate intra-EU financial linkages. I confirm that information costs and regulations are important factors influencing international asset choices of banks, but their relative importance differs among countries.