Regulatory Arbitrage and Presence of Foreign Banks: Evidence from the Indian Banking Sector

Q2 Economics, Econometrics and Finance
A. Prashad
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引用次数: 0

Abstract

Presence of a heterogeneous banking system across countries provides opportunities for cross-border banks to indulge in activities of regulatory arbitrage. This article attempts to investigate whether regulatory arbitrage induces the presence of foreign banks in India. Using relevant country-level data on various aspects of banking regulations, we conduct a series of panel regressions to examine the effect of cross-country gap in banking regulations on foreign banks’ presence in India. We find regulatory arbitrage as significantly determining foreign banks’ presence in India, after controlling for other factors (income level of home country, bilateral economic relationship, colonial and linguistic commonality, and geographic proximity).
监管套利与外资银行的存在——来自印度银行业的证据
各国银行体系的异质性为跨境银行提供了沉迷于监管套利活动的机会。本文试图调查监管套利是否会导致外国银行在印度的存在。利用银行监管各个方面的相关国家级数据,我们进行了一系列面板回归,以检验银行监管的跨国差距对外国银行在印度存在的影响。我们发现,在控制了其他因素(母国的收入水平、双边经济关系、殖民地和语言的共同性以及地理邻近性)后,监管套利在很大程度上决定了外国银行在印度的存在。
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来源期刊
Global Journal of Emerging Market Economies
Global Journal of Emerging Market Economies Economics, Econometrics and Finance-Economics, Econometrics and Finance (miscellaneous)
CiteScore
2.70
自引率
0.00%
发文量
27
期刊介绍: Global Journal of Emerging Market Economies is a peer-reviewed journal. The aim of the journal is to provide an international platform for knowledge sharing, discussion and networking on the various aspects related to emerging market economies through publications of original research. It aims to make available basic reference material for policy-makers, business executives and researchers interested in issues of fundamental importance to the economic prospects and performance of emerging market economies. The topics for discussion are related to the following general categories: D. Microeconomics E. Macroeconomics and Monetary Economics F. International Economics G. Financial Economics H. Public Economics I. Health, Education, and Welfare J. Labor and Demographic Economics L. Industrial Organization O. Economic Development, Innovation, Technological Change, and Growth Q. Agricultural and Natural Resource Economics • Environmental and Ecological Economics R. Urban, Rural, Regional, Real Estate, and Transportation Economics Additionally, the journal would be most interested to publish topics related to Global Financial Crisis and the Impact on Emerging Market Economies Economic Development and Inclusive Growth Climate Change and Energy Infrastructure Development and Public Private Partnerships Capital Flows to and from Emerging Market Economies Regional Cooperation Trade and Investment and Development of National and Regional Financial Markets The Belt and Road Initiative.
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