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Internal Capital Markets and Lending by Multinational Bank Subsidiaries Author info | Abstract | Publisher info | Download info | Related research | Statistics De Haas, Ralph
van Lelyveld, Iman
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We use new panel data on the intra-group ownership structure and the balance sheets of 45 of the largest multinational bank holdings to analyze what determines the credit growth of their subsidiaries. We find evidence for the existence of internal capital markets through which multinational banks manage the credit growth of their subsidiaries. Multinational bank subsidiaries with financially strong parent banks are able to expand their lending faster. As a result of parental support, foreign bank subsidiaries also do not need to rein in their credit supply during a financial crisis, while domestic banks need to do so.
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Paper provided by University Library of Munich, Germany in its series MPRA Paper with number
13164.
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Date of creation: Jan 2009Date of revision:
Handle: RePEc:pra:mprapa:13164Contact details of provider: Postal: Schackstr. 4, D-80539 Munich, Germany Phone: +49-(0)89-2180-2219 Fax: +49-(0)89-2180-3900 Web page: http://mpra.ub.uni-muenchen.de More information through EDIRC
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Keywords: multinational banks ; credit supply ; internal capital markets ; financial crisis ; Other versions of this item:
Find related papers by JEL classification: F15 - International Economics - - Trade - - - Economic Integration F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business F36 - International Economics - - International Finance - - - Financial Aspects of Economic Integration G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Mortgages
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