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http://dspace.mediu.edu.my:8181/xmlui/handle/10419/17792| Title: | Capital Market Integration in Euroland - The Role of Banks |
| Keywords: | D82 F36 G21 ddc:330 capital mobility European financial integration banking asymmetric information portfolio choice Finanzmarkt Marktintegration Bank Internationale Kapitalmobilität Portfolio-Management Europäische Wirtschafts- und Währungsunion Asymmetrische Information Bankrisiko Theorie EU-Staaten |
| Issue Date: | 16-Oct-2013 |
| Publisher: | Kiel Institute for the World Economy (IfW) Kiel |
| Description: | The introduction of the euro marks a milestone in the process of European financial market integration. This paper analyzes the implications of the euro for cross-border banking activities. A portfolio model is used which captures the role of banks as providers of informational and of risk-diversification services. By eliminating exchange rate risks, the euro enhances the incentives of banks to expand within Euroland. Yet, while the currency bias in bank portfolios will be eliminated, the home bias will remain. It is also argued that positive diversification effects may outweigh possible negative effects on the risk taking of banks. |
| URI: | http://koha.mediu.edu.my:8181/xmlui/handle/10419/17792 |
| Other Identifiers: | http://hdl.handle.net/10419/17792 ppn:271664649 |
| Appears in Collections: | EconStor |
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