Risk and the Corporate Structure of Banks
AbstractWe identify different sources of risk as important determinants of banks'' corporate structures when expanding into new markets. Subsidiary-based corporate structures benefit from greater protection against economic risk because of affiliate-level limited liability, but are more exposed to the risk of capital expropriation than are branches. Thus, branch-based structures are preferred to subsidiary-based structures when expropriation risk is high relative to economic risk, and vice versa. Greater cross-country risk correlation and more accurate pricing of risk by investors reduce the differences between the two structures. Furthermore, the corporate structure affects bank risk taking and affiliate size.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by International Monetary Fund in its series IMF Working Papers with number 10/40.
Date of creation: 01 Feb 2010
Date of revision:
Contact details of provider:
Postal: International Monetary Fund, Washington, DC USA
Phone: (202) 623-7000
Fax: (202) 623-4661
Web page: http://www.imf.org/external/pubind.htm
More information through EDIRC
Other versions of this item:
- NEP-ALL-2010-03-28 (All new papers)
- NEP-BAN-2010-03-28 (Banking)
- NEP-BEC-2010-03-28 (Business Economics)
- NEP-RMG-2010-03-28 (Risk Management)
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- Friederike Niepmann, 2011.
"Banking across Borders,"
DNB Working Papers
325, Netherlands Central Bank, Research Department.
- Friederike Niepmann, 2013. "Banking across Borders," CESifo Working Paper Series 4120, CESifo Group Munich.
- Niepmann, Friederike, 2013. "Banking across borders," Discussion Papers 19/2013, Deutsche Bundesbank, Research Centre.
- Friederike Niepmann, 2012. "Banking across borders," Staff Reports 576, Federal Reserve Bank of New York.
- M. Levati & Jianying Qiu & Prashanth Mahagaonkar, 2012.
"Testing the Modigliani-Miller theorem directly in the lab,"
Springer, vol. 15(4), pages 693-716, December.
- M. Vittoria Levati & Jianying Qiu & Prashanth Mahagaonkar, 2011. "Testing the Modigliani-Miller theorem directly in the lab," Jena Economic Research Papers 2011-021, Friedrich-Schiller-University Jena, Max-Planck-Institute of Economics.
- Yehning Chen & Iftekhar Hasan, 2011.
"Subordinated Debt, Market Discipline, and Bank Risk,"
Journal of Money, Credit and Banking,
Blackwell Publishing, vol. 43(6), pages 1043-1072, 09.
- Chen , Yehning & Hasan, Iftekhar, 2011. "Subordinated debt, market discipline, and bank risk," Research Discussion Papers 20/2011, Bank of Finland.
- Diemo Dietrich & Uwe Vollmer, 2006.
"Banks’ Internationalization Strategies: The Role of Bank Capital Regulation,"
IWH Discussion Papers
18, Halle Institute for Economic Research.
- Eugenio Cerutti, 2013. "Banksâ€™ Foreign Credit Exposures and Borrowersâ€™ Rollover Risks Measurement, Evolution and Determinants," IMF Working Papers 13/9, International Monetary Fund.
- DellAriccia, Giovanni & Laeven, Luc & Marquez, Robert, 2011.
"Monetary Policy, Leverage, and Bank Risk-taking,"
CEPR Discussion Papers
8199, C.E.P.R. Discussion Papers.
- Elisa Luciano & Clas Wihlborg, 2013.
"The Organization of Bank Affiliates; A Theoretical Perspective on Risk and Efficiency,"
ICER Working Papers
06-2013, ICER - International Centre for Economic Research.
- Elisa Luciano & Clas Wihlborg, 2013. "The Organization of Bank Affiliates; A Theoretical Perspective on Risk and Efficiency," Carlo Alberto Notebooks 322, Collegio Carlo Alberto.
- Diemo Dietrich & Tobias Knedlik & Axel Lindner, 2011. "Central and Eastern European countries in the global financial crisis: a typical twin crisis?," Post-Communist Economies, Taylor & Francis Journals, vol. 23(4), pages 415-432, April.
- Lin, Jane-Raung & Chung, Huimin & Hsieh, Ming-Hsiang & Wu, Soushan, 2012. "The determinants of interest margins and their effect on bank diversification: Evidence from Asian banks," Journal of Financial Stability, Elsevier, vol. 8(2), pages 96-106.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Jim Beardow) or (Hassan Zaidi).
If references are entirely missing, you can add them using this form.