Functional distance and US global banks’ foreign branch lending

IF 5.4 2区经济学 Q1 BUSINESS, FINANCE

Journal of International Financial Markets Institutions & Money Pub Date : 2025-07-03 DOI:10.1016/j.intfin.2025.102180

Dieter Vanwalleghem , Carmela D’Avino

引用次数: 0

Abstract

This paper examines the significance of functional distance in explaining the lending behavior of foreign branches of global banks. We operationalize functional distance, or the distance between the global bank’s headquarters and the host country of the foreign branch, along a geographic, linguistic, and cultural dimension. Analyzing the lending activities of US global banks’ foreign branches in 38 countries from 2001 to 2020, we find that geographic and linguistic functional distance has an adverse effect on local lending. We further find that a host country’s institutional quality can moderate the effect of functional distance on local lending.

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功能距离与美国全球银行海外分行贷款

本文考察了功能距离在解释跨国银行海外分行贷款行为中的意义。我们根据地理、语言和文化维度，将功能距离或全球银行总部与外国分行所在国之间的距离进行操作。分析2001 - 2020年美国全球银行在38个国家的海外分行的贷款活动，我们发现地理和语言功能距离对当地贷款有不利影响。我们进一步发现，东道国的制度质量可以调节功能距离对地方贷款的影响。

本文章由计算机程序翻译，如有差异，请以英文原文为准。

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来源期刊

Journal of International Financial Markets Institutions & Money Multiple-

CiteScore

6.60

自引率

10.00%

发文量

142

期刊介绍： International trade, financing and investments, and the related cash and credit transactions, have grown at an extremely rapid pace in recent years. The international monetary system has continued to evolve to accommodate the need for foreign-currency denominated transactions and in the process has provided opportunities for its ongoing observation and study. The purpose of the Journal of International Financial Markets, Institutions & Money is to publish rigorous, original articles dealing with the international aspects of financial markets, institutions and money. Theoretical/conceptual and empirical papers providing meaningful insights into the subject areas will be considered. The following topic areas, although not exhaustive, are representative of the coverage in this Journal. • International financial markets • International securities markets • Foreign exchange markets • Eurocurrency markets • International syndications • Term structures of Eurocurrency rates • Determination of exchange rates • Information, speculation and parity • Forward rates and swaps • International payment mechanisms • International commercial banking; • International investment banking • Central bank intervention • International monetary systems • Balance of payments.