Changing business models in international bank funding

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

The views expressed in this publication are those of the authors and do not necessarily reflect the views of the BIS or its member central banks.