Carmela D'Avino-Dumas

finance seminar

Carmela D'Avino-Dumas

Spatial dependence and internal capital markets

MEGA Salle de conf

MEGA - Salle de conférence

Maison de l'économie et de la gestion d'Aix
424 chemin du viaduc
13080 Aix-en-Provence

Tuesday, November 30 2021| 2:30pm

Eric Girardin: eric.girardin[at]
Christelle Lecourt: christelle.lecourt[at]


This paper investigates the extent to which spatial dependence arising from internal capital markets affect the local lending of foreign branches of US global banks. We contribute to the literature by providing an estimation of the cross-border liquidity network created via internal capital markets and an analysis of the resulting spatial dependence. The proximity between branches is a function of the relative size of the interoffice transactions. Our results indicate that the foreign branches in nearby host countries have common patterns of lending, with lending being highly dependent on foreign spatial variables, with local variables playing a less important role.