Publication overview

Internal capital markets and lending by multinational bank subsidiaries

Abstract

This paper uses new data on the ownership structure and balance sheets of 45 of the world’s largest banking groups to analyse what determines the credit growth of their subsidiaries, many of which are in central and eastern Europe. It also examines how lending by multinational bank subsidiaries is influenced by the macroeconomic situation in the host and home country, and the financial characteristics of the subsidiary itself, the parent bank and other subsidiaries in the same banking group.

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