Multinational banks: Supranational resolution regimes and the importance of capital regulation

Arbeitspapier

The lack of coordination in the resolution of multinational banks has led to demands for the increased centralization of resolution regimes. However, as this paper argues, the anticipation of resolution procedures affects the incentives of host countries to impose capital standards on their resident banks. Critically, it is shown that overall welfare can even be decreased by introducing a centralized resolution regime without fully centralizing capital requirements. As, in the aftermath of the financial crisis, only countries that are not part of a supranational resolution regime unilaterally and significantly increased the capital requirements for their largest resident banks, this paper can help to understand and study the heterogeneity of the observed regulatory approaches.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: Munich Discussion Paper ; No. 2016-10

Classification and Topics

• Classification: Wirtschaft ; Banks; Depository Institutions; Micro Finance Institutions; Mortgages ; General Financial Markets: Government Policy and Regulation ; Bankruptcy; Liquidation ; Financial Aspects of Economic Integration ; State and Local Government; Intergovernmental Relations: Interjurisdictional Differentials and Their Effects
• Subject: regulatory competition ; multinational banks ; capital requirements ; bank supervision

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Maier, Ulf
• Event: Veröffentlichung
• (who): Ludwig-Maximilians-Universität München, Volkswirtschaftliche Fakultät
• (where): München
• (when): 2016

Further information

• DOI: doi:10.5282/ubm/epub.29630
• Handle: http://hdl.handle.net/10419/156369
• URN: urn:nbn:de:bvb:19-epub-29630-1
• Last update: 10.03.2025, 11:46 AM CET