KIM CUONG LY KIM.Ly@nottingham.ac.uk
Assistant Professor
Can parents protect their children? Risk comparison analysis between affiliates of multi- and single-bank holding companies
Ly, Kim Cuong; Liu, Frank Hong; Opong, Kwaku
Authors
Frank Hong Liu
Kwaku Opong
Abstract
© 2018 Elsevier B.V. We find that multi-bank holding companies (MBHCs) in the U.S. have lower insolvency risk than single-bank holding companies (SBHCs) at the parent level, but have significantly higher insolvency risk than the latter at the subsidiary level. Our results suggest that MBHC parents tend to benefit from the internal capital market while allowing for more risk-taking at the individual levels. We further find that the higher risk for MBHC affiliates is because of the organizational and geographic complexity at the MBHC parent level. Our results highlight the importance of government regulation on banks at both parent and subsidiary levels.
Citation
Ly, K. C., Liu, F. H., & Opong, K. (2018). Can parents protect their children? Risk comparison analysis between affiliates of multi- and single-bank holding companies. Journal of Financial Stability, 37, 1-10. https://doi.org/10.1016/j.jfs.2018.05.001
Journal Article Type | Article |
---|---|
Acceptance Date | May 4, 2018 |
Online Publication Date | May 5, 2018 |
Publication Date | 2018-08 |
Deposit Date | Nov 7, 2019 |
Publicly Available Date | Jan 15, 2020 |
Journal | Journal of Financial Stability |
Print ISSN | 1572-3089 |
Publisher | Elsevier |
Peer Reviewed | Peer Reviewed |
Volume | 37 |
Pages | 1-10 |
DOI | https://doi.org/10.1016/j.jfs.2018.05.001 |
Keywords | insolvency risk; complexity; internal capital market; stand-alone banks; bank holding companies’ affiliates |
Public URL | https://nottingham-repository.worktribe.com/output/3075796 |
Publisher URL | https://www.sciencedirect.com/science/article/pii/S1572308917300281 |
Additional Information | This article is maintained by: Elsevier; Article Title: Can parents protect their children? Risk comparison analysis between affiliates of multi- and single-bank holding companies; Journal Title: Journal of Financial Stability; CrossRef DOI link to publisher maintained version: https://doi.org/10.1016/j.jfs.2018.05.001; Content Type: article; Copyright: © 2018 Elsevier B.V. All rights reserved. |
Files
Can Parents Protect Their Children
(657 Kb)
PDF
You might also like
Who acquires whom among stand-alone commercial banks and bank holding company affiliates?
(2016)
Journal Article
The Basel III net stable funding ratio adjustment speed and systemic risk
(2016)
Journal Article
Downloadable Citations
About Repository@Nottingham
Administrator e-mail: discovery-access-systems@nottingham.ac.uk
This application uses the following open-source libraries:
SheetJS Community Edition
Apache License Version 2.0 (http://www.apache.org/licenses/)
PDF.js
Apache License Version 2.0 (http://www.apache.org/licenses/)
Font Awesome
SIL OFL 1.1 (http://scripts.sil.org/OFL)
MIT License (http://opensource.org/licenses/mit-license.html)
CC BY 3.0 ( http://creativecommons.org/licenses/by/3.0/)
Powered by Worktribe © 2024
Advanced Search