Regulated banks take greater risks abroad, says ECB paper


A working paper, published by the European Central Bank (ECB) on November 6, finds empirical evidence that onerous banking regulation in home jurisdictions lowers banks' lending standards abroad.

The authors, Steven Ongena, Alexander Popov and Gregory Udell, find lower barriers to entry and tighter restrictions on bank activities in domestic markets result in more lax lending standards by multinational banks in foreign markets.

These standards fall even further when combined with higher minimum

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact [email protected] or view our subscription options here:

You are currently unable to copy this content. Please contact [email protected] to find out more.

To continue reading...

You need to sign in to use this feature. If you don’t have a Central Banking account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account here: