Risk and the corporate structure of banks /

Risk and the corporate structure of banks /

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Bibliographic Details
Author / Creator:	Dell'Ariccia, Giovanni, author.
Imprint:	Washington, D.C. : International Monetary Fund, ©2010.
Description:	1 online resource (25 pages).
Language:	English
Series:	IMF working paper ; WP/10/40 IMF working paper ; WP/10/40.
Subject:	Risk management -- Econometric models. Banks and banking -- Econometric models. Banks and banking -- Econometric models. Risk management -- Econometric models. Electronic books.
Format:	E-Resource Book
URL for this record:	http://pi.lib.uchicago.edu/1001/cat/bib/12498402

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

Table of Contents:

I. Introduction; II. Model; A. Branch Structure; B. Subsidiary Structure; III. Comparison of Corporate Structures; IV. Extensions and Robustness; A. Endogenous Rates of Return on Bank Assets; B. Endogenous Rates on Deposits; C. Bank Risk Taking; V. Discussion and Conclusions; Appendix: Proofs; References.