In this paper, we examine the determinants of bank holdings of domestic sovereign debt with a panel dataset of 295 banks in 35 countries between 2002 and 2013. The findings indicate that the structure of bank ownership (domestic, foreign, or government ownership), the quality of governance, and the level of financial development of the countries in which banks operate all determine the level of home bias. Specifically, we find that domestic banks tend to hold more domestic sovereign debt relative to their foreign counterparts. We also provide evidence that home bias is even stronger when the domestic bank is controlled by its government. Moreover, home bias increases when government bonds are more risky, home governments are less effective, and when banking systems are less financially developed. Overall, we find that banks’ home bias in holding sovereign debt is an international phenomenon that is determined by both bank- and country-specific factors.

中文翻译：

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国内主权债务银行控股决定因素的国际证据

在本文中，我们使用 2002 年至 2013 年间 35 个国家的 295 家银行的面板数据集检验了银行持有国内主权债务的决定因素。银行经营所在国家的治理质量和金融发展水平都决定了本国偏见的程度。具体而言，我们发现国内银行相对于外国银行往往持有更多的国内主权债务。我们还提供证据表明，当国内银行受政府控制时，国内偏见会更加强烈。此外，当政府债券风险较高、本国政府效率较低以及银行系统的金融体系欠发达时，本国偏见就会增加。全面的，