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Way of Banking Development Abroad: Branches or Subsidiaries

Author

Listed:
  • Eleftherios I. Thalassinos
  • Bozhana Venediktova
  • Daniela Staneva-Petkova
  • Vicky Zampeta

Abstract

The purpose of the study is to show what kind of risks would have emerged for bank depositors if there are economical and political risks in a given country. For example, as is the case with the crisis in Greece, a threat or salvation for the banking organizational forms abroad exists regarding which type of bank development is more efficient, branches or subsidiaries. Respectively why do the big banks prefer to operate through branches and those which are focused on retail sales through subsidiaries? What impact could the political and economic risks have on the required reserves on the parent bank? Does the decision depend on the applied organizational form of the bank or on other reasons?

Suggested Citation

  • Eleftherios I. Thalassinos & Bozhana Venediktova & Daniela Staneva-Petkova & Vicky Zampeta, 2013. "Way of Banking Development Abroad: Branches or Subsidiaries," International Journal of Economics & Business Administration (IJEBA), International Journal of Economics & Business Administration (IJEBA), vol. 0(3), pages 69-78.
    • Handle: RePEc:ers:ijebaa:v:i:y:2013:i:3:p:69-78
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    References listed on IDEAS

    as
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    More about this item

    Keywords

    Foreign Banks; Organizational Form; Branches; Subsidiaries;
    All these keywords.

    JEL classification:

    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages

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