Concentration in Asia’s Cross-border Banking: Determinants and Impacts

Cross-border bank positions in Asia and the Pacific remain highly concentrated to few counterparties, exposing region financial risks policy spillovers. Consequently, assessing determinants impacts of region’s cross-border banking concentration is relevant design appropriate policies for promoting development safeguarding stability. To this end, we construct measures 47 economies from 2000 2019. The results show that higher openness capital account trade, as well better per capita income, are significantly associated with lower concentration. Moreover, elevated tends domestic credit growth nonperforming loans. We find no impact on profitability region.