Banking Group Features and Interbank Market Exposure: Evidence from the Main European Groups

The banking group affiliation could affect both the asset and liability side of the interbank exposure of a bank because of the strict relationship between all group’s members. Considering a representative sample of all of the main European banks for the timeframe 2005-2010, we study the relationship between interbank exposure (asset side, liability side and the net exposure) with respect to the bank characteristics, the market dynamics and the group structure characteristics. Results demonstrate that the interbank exposure is not driven only by banks’ and market features as confirmed by the literature but also by group features, even if during the financial crisis something changed.