Arbeitspapier

Foreign investment, regulatory arbitrage, and the risk of U.S. banking organizations

This study investigates the implications of cross-country differences in banking regulation and supervision for the international subsidiary locations and risk of U.S. bank holding companies (BHCs). We find that U.S. BHCs are more likely to operate subsidiaries in countries with weaker regulation and supervision and that such location decisions are associated with elevated BHC risk and higher contribution to systemic risk. The quality of BHCs' internal controls and risk management play an important role in these location choices and risk outcomes. Overall, our study suggests that U.S. banking organizations engage in cross-country regulatory arbitrage with potentially adverse consequences.

Sprache
Englisch

Erschienen in
Series: Working Paper ; No. 2017-2

Klassifikation
Wirtschaft
International Financial Markets
Banks; Depository Institutions; Micro Finance Institutions; Mortgages
Financial Institutions and Services: Government Policy and Regulation
Thema
regulation
supervision
bank holding companies
cross-border operations
subsidiary locations
risk
systemic risk

Ereignis
Geistige Schöpfung
(wer)
Frame, W. Scott
Mihov, Atanas
Sanz, Leandro
Ereignis
Veröffentlichung
(wer)
Federal Reserve Bank of Atlanta
(wo)
Atlanta, GA
(wann)
2017

Handle
Letzte Aktualisierung
10.03.2025, 11:41 MEZ

Datenpartner

Dieses Objekt wird bereitgestellt von:
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. Bei Fragen zum Objekt wenden Sie sich bitte an den Datenpartner.

Objekttyp

  • Arbeitspapier

Beteiligte

  • Frame, W. Scott
  • Mihov, Atanas
  • Sanz, Leandro
  • Federal Reserve Bank of Atlanta

Entstanden

  • 2017

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