TY - JOUR
T1 - Cross-border impact of the Financial Services Modernization Act
T2 - Evidence from large foreign banks
AU - Mamun, Abdullah
AU - Hassan, M. Kabir
AU - Isik, Ihsan
PY - 2011/3
Y1 - 2011/3
N2 - This article investigates the impact of the Financial ServicesModernization Act (FSMA) on foreign banks. We find that the banking sectors of most developed countries experience significant negative spillover effect. However, the impacts on any two countries' banking sectors are not identical. Most importantly, we show that exposure to systematic risk with respect to the world equity index can explain the cross-sectional variation of the wealth effects. We also find that larger banks are more adversely affected.
AB - This article investigates the impact of the Financial ServicesModernization Act (FSMA) on foreign banks. We find that the banking sectors of most developed countries experience significant negative spillover effect. However, the impacts on any two countries' banking sectors are not identical. Most importantly, we show that exposure to systematic risk with respect to the world equity index can explain the cross-sectional variation of the wealth effects. We also find that larger banks are more adversely affected.
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U2 - 10.1080/13504851003670627
DO - 10.1080/13504851003670627
M3 - Article
AN - SCOPUS:79952481058
SN - 1350-4851
VL - 18
SP - 337
EP - 341
JO - Applied Economics Letters
JF - Applied Economics Letters
IS - 4
ER -