CHAPTER 29
Prudential Regulations, Safety Nets, and Corporate Structure of International Banks (Branches versus Subsidiaries)
This chapter discusses the economics of bank regulations and public safety nets. Banking around the world is one of the most heavily regulated industries. What is the raison d’être of state intervention? Next, the chapter describes the various types of regulations and safety nets and their evolution over time. Finally, the chapter discusses banking regulations and supervision in an international banking context. This calls attention to the type of corporate structure used by international banks—branches or subsidiaries. ...
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