Cross-border banking and foreign branch regulation in Europe

Purpose This paper aims to examine the relevance of cross-border activity in European banking sector, evaluating role differences regulation explain level interest entering foreign markets. Design/methodology/approach The sample considers all banks Union (EU 28) existing at year-end 2017, and information about ultimate owners’ nationality classify local is collected. analysis provides a mapping regulatory restrictions for evaluates how they impact players deposit lending Findings Results show that lower are capital adequacy requirements, higher amounts loans deposits offered by non-European Economic Area and, additionally, probability having bank operating country. Originality/value new evidence on arbitrage opportunities EU outlines among countries not previously studied.