Changing business models in international bank funding

BIS Working Papers  |  No 614  | 
09 March 2017
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This paper investigates the foreign funding mix of globally active banks. Using BIS international banking statistics for a panel of 12 advanced economies, we detect a structural break in international bank funding at the onset of the global financial crisis. In their post-break business model, banks rely less on cross-border liabilities and, instead, tap funds from outside their jurisdictions by making more active use of their subsidiaries and branches, as well as inter-office accounts within the same banking group.

JEL classification: C32, F65, G21

Keywords: bank funding, structural reform initiatives, international banks