CGD Working Paper – Regulatory Arbitrage and Loan Location Decisions by Multinational Banks
Author(s):Asli Demirguc-Kunt, Balint L. Horvath, Harry Huizinga Date:April 2023 Abstract: This paper examines the impact of international differences in capital regulation on multinationalbanks’ loan origination location decisions. International loan location decisions represent a keybanking margin that has previously not been examined in the literature on regulatory arbitrage bybanks. Our estimation relies on within-loan contribution variation[…]