Regulatory Arbitrage and International Bank Flows

被引:196
作者
Houston, Joel F. [1 ]
Lin, Chen [2 ]
Ma, Yue [3 ]
机构
[1] Univ Florida, Gainesville, FL 32611 USA
[2] Chinese Univ Hong Kong, Hong Kong, Hong Kong, Peoples R China
[3] Lingnan Univ Hong Kong, Hong Kong, Hong Kong, Peoples R China
关键词
GROWTH; RISK; INFORMATION; DATABASE; DRIVES; LAW;
D O I
10.1111/j.1540-6261.2012.01774.x
中图分类号
F8 [财政、金融];
学科分类号
0202 ;
摘要
We study whether cross-country differences in regulations have affected international bank flows. We find strong evidence that banks have transferred funds to markets with fewer regulations. This form of regulatory arbitrage suggests there may be a destructive race to the bottom in global regulations, which restricts domestic regulators ability to limit bank risk-taking. However, we also find that the links between regulation differences and bank flows are significantly stronger if the recipient country is a developed country with strong property rights and creditor rights. This suggests that, while differences in regulations have important influences, without a strong institutional environment, lax regulations are not enough to encourage massive capital flows.
引用
收藏
页码:1845 / 1895
页数:51
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