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Lending Behavior of Multinational Bank Affiliates
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SYSNO ASEP 0354315 Document Type J - Journal Article R&D Document Type Journal Article Subsidiary J Ostatní články Title Lending Behavior of Multinational Bank Affiliates Author(s) Derviz, Alexis (UTIA-B) RID, ORCID
Podpiera, J. (CZ)Source Title Risk Governance and Control: Financial Markets & Institutions - ISSN 2077-429X
Roč. 1, č. 1 (2011), s. 19-36Number of pages 18 s. Language eng - English Country UA - Ukraine Keywords Multinational bank ; Contagion ; Substitution ; Agency Subject RIV AH - Economics CEZ AV0Z10750506 - UTIA-B (2005-2011) Annotation We study the parent influence on lending by affiliates of a multinational bank. In the proposed theoretical model, local lending is influenced by shareholder-affiliate manager delegation and precautionary motives. The outcome is either contagion (the loan volume in the affiliate follows the direction of the parent bank country shock) or performance-based reallocation of funds (substitution), depending on the degree of manager delegation in the affiliate and the liquidity-sensitivity in the parent bank. Empirical investigation, deliberately conducted on a sample not covering the latest financial crisis, shows that also in “normal” times, multinational banks that are likely to delegate lending decisions or be more liquidity-sensitive are more inclined towards contagionist behavior. Workplace Institute of Information Theory and Automation Contact Markéta Votavová, votavova@utia.cas.cz, Tel.: 266 052 201. Year of Publishing 2011
Number of the records: 1