Hidden Bibliographic Details
| Other authors / contributors: | Marquez, Robert, 1968- author.
International Monetary Fund. Research Department, issuing body.
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| ISBN: | 1283561395
9781283561396
9781451962901
1451962908
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| Notes: | Includes bibliographical references (pages 23-25).
Print version record.
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| Summary: | We 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.
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| Other form: | Print version: Dell'Ariccia, Giovanni. Risk and the corporate structure of banks. [Washington, D.C.] : International Monetary Fund, ©2010
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