Language:
English
Pages:
1 Online-Ressource (circa 54 Seiten)
,
Illustrationen
Series Statement:
Policy research working paper 9037
Series Statement:
World Bank E-Library Archive
Series Statement:
Policy research working paper
Parallel Title:
Erscheint auch als Demirguc-Kunt, Asli Regulatory Arbitrage and Cross-Border Syndicated Loans
Keywords:
Regulatory arbitrage
;
creditor rights
;
CREDITOR RIGHTS
;
INTERNATIONAL LENDING
;
MULTINATIONAL BANK
;
REGULATION
;
SYNDICATED LOANS
;
Graue Literatur
Abstract:
This paper investigates how international regulatory and institutional differences affect lending in the cross-border syndicated loan market. Lending provided through a foreign subsidiary is subject to subsidiary-country regulation and institutional arrangements. Multinational banks' choices between loan origination through the parent bank or through a foreign subsidiary provide information about these banks' preferences to operate in countries with varying regulations and institutions. The results indicate that international banks have a tendency to switch loan origination toward countries with less stringent bank regulation and supervision consistent with regulatory arbitrage, but that they prefer to originate loans in countries with higher-quality institutions related to financial market monitoring, creditor rights, and the speed of contract enforcement
DOI:
10.1596/1813-9450-9037
URL:
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