Corporate Governance and Intre-group Transactions in European Bank Holding Companies during the Crisis

Franklin Allen, Xian Gu and Oskar Kowalewski ()
Additional contact information
Franklin Allen: University of PA

Working Papers from University of Pennsylvania, Wharton School, Weiss Center

Abstract: In this paper we study the intra-group transactions between the parent bank and its foreign subsidiaries in European Union countries during the crisis. We use hand-collected data from annual statements on related party transaction and find that they may create a serious problem for the stability of the foreign banks' subsidiaries. Moreover, as some of those subsidiary banks were large by assets in some of the member states the related party transactions with the parent bank created a serious threat to host countries financial system stability. We attribute this transaction to weak governance in foreign subsidiaries. We suggest improvements in governance as well greater disclosure of related party transactions in bank holding companies in Europe.

JEL-codes: G21 G28 G38 (search for similar items in EconPapers)
Date: 2011-02
References: Add references at CitEc
Citations: View citations in EconPapers (14)

Downloads: (external link)
http://fic.wharton.upenn.edu/fic/papers/11/11-35.pdf
Our link check indicates that this URL is bad, the error code is: 404 Not Found (http://fic.wharton.upenn.edu/fic/papers/11/11-35.pdf [301 Moved Permanently]--> https://wifpr.wharton.upenn.edu/fic/papers/11/11-35.pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ecl:upafin:11-35

Access Statistics for this paper

More papers in Working Papers from University of Pennsylvania, Wharton School, Weiss Center Contact information at EDIRC.
Bibliographic data for series maintained by ().