Integrating with Their Feet: Cross-Border Lending at the German-Austrian Border

Integrating with Their Feet: Cross-Border Lending at the German-Austrian Border

Integrating with Their Feet: Cross-Border Lending at the German-Austrian Border

The financial integration in Europe concentrates on cross-border mergers rather than cross-border lending and emphasizes the need for harmonizing bank regulation and supervision. We study the impact of cross-border lending in a theoretical model where banks acquire either hard or soft information of borrowing firms.

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