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aAbsent standardized information of credit histories, standard banking relationships, in which a bank spends considerable resources acquiring information on potential borrowers, would work but would limit (at least geographically, if not in other ways) the loan-creation capabilities of the lenders and ...
Result (ii) suggests that a bank strategy of the cross-border loan portfolio diversification is also encouraged when the bank’s capital requirement in the domestic market is increased. Our suggestion is consistent with the stability argument of Berger and Bouwman (2013). Overall, from a ...
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