International banking and cross-border effects of regulation: lessons from Turkey

Başkaya, Y. S. , Binici, M. and Kenç, T. (2017) International banking and cross-border effects of regulation: lessons from Turkey. International Journal of Central Banking, 13(S1), pp. 379-403.

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Publisher's URL: http://www.ijcb.org/journal/ijcb17q1a14.htm

Abstract

How do regulatory changes in a foreign country affect the lending growth in another country? This paper addresses this question using bank-level data from Turkey and macroprudential measures from fifty-six countries over a sample period of 2006–13. We offer evidence for the existence of the inward transmission of foreign prudential regulations by showing that the macroprudential tightening abroad leads to lending growth by the banks in Turkey. We find that domestic affiliates of foreign banks play a more prominent role in this transmission. We show that the existence and the magnitude spillovers differ across bank characteristics or the prudential instruments. Finally, our results indicate that the spillovers depend on the financial cycles.

Item Type:Articles
Status:Published
Refereed:Yes
Glasgow Author(s) Enlighten ID:Baskaya, Dr Soner
Authors: Başkaya, Y. S., Binici, M., and Kenç, T.
College/School:College of Social Sciences > Adam Smith Business School > Economics
Journal Name:International Journal of Central Banking
Publisher:Federal Reserve Board
ISSN:1815-4654
ISSN (Online):1815-7556

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