Can parents protect their children? Risk comparison analysis between affiliates of multi- and single-bank holding companies

Autor:	Kwaku K. Opong, Frank Liu, Kim Cuong Ly
Rok vydání:	2018
Předmět:	040101 forestry 050208 finance Insolvency Government regulation 0502 economics and business 05 social sciences 0401 agriculture forestry and fisheries Financial system 04 agricultural and veterinary sciences Business General Economics Econometrics and Finance Capital market Finance
Zdroj:	Journal of Financial Stability. 37:1-10
ISSN:	1572-3089
Popis:	We find that multi-bank holding companies (MBHCs) in the U.S. have lower insolvency risk than single-bank holding companies (SBHCs) at the parent level, but have significantly higher insolvency risk than the latter at the subsidiary level. Our results suggest that MBHC parents tend to benefit from the internal capital market while allowing for more risk-taking at the individual levels. We further find that the higher risk for MBHC affiliates is because of the organizational and geographic complexity at the MBHC parent level. Our results highlight the importance of government regulation on banks at both parent and subsidiary levels.
Databáze:	OpenAIRE
Externí odkaz:	https://explore.openaire.eu/search/publication?articleId=doi_dedup___::a7782cb04fa3b8095fd5f7699148ae8d https://doi.org/10.1016/j.jfs.2018.05.001 Zobrazit plný text záznamu Full Text from ScienceDirect