Internal Capital Markets and Lending by Multinational Bank Subsidiaries
Ralph De Haas () and
MPRA Paper from University Library of Munich, Germany
We use new panel data on the intra-group ownership structure and the balance sheets of 45 of the largest multinational bank holdings to analyze what determines the credit growth of their subsidiaries. We find evidence for the existence of internal capital markets through which multinational banks manage the credit growth of their subsidiaries. Multinational bank subsidiaries with financially strong parent banks are able to expand their lending faster. As a result of parental support, foreign bank subsidiaries also do not need to rein in their credit supply during a financial crisis, while domestic banks need to do so.
Keywords: multinational banks; credit supply; internal capital markets; financial crisis (search for similar items in EconPapers)
JEL-codes: F15 F23 F36 G21 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-ban
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (13) Track citations by RSS feed
Downloads: (external link)
https://mpra.ub.uni-muenchen.de/13164/1/MPRA_paper_13164.pdf original version (application/pdf)
Journal Article: Internal capital markets and lending by multinational bank subsidiaries (2010)
Working Paper: Internal Capital Markets and Lending by Multinational Bank Subsidiaries (2006)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:13164
Access Statistics for this paper
More papers in MPRA Paper from University Library of Munich, Germany Ludwigstraße 33, D-80539 Munich, Germany. Contact information at EDIRC.
Bibliographic data for series maintained by Joachim Winter ().