Handbook of Safeguarding Global Financial Stability

Chapter 29

Organization, Supervision and Resolution of Cross-border Banking

P. Angkinand* and C. Wihlborg^†

^*Milken Institute, Santa Monica, CA, USA

^†Chapman University, Orange, CA, USA

Outline

Introduction

The Nordea Case

Subsidiary and Branch Organizations in Theory and Practice

Organization of Supervision and Crisis Management: Can National Responsibility Be Effective?

Conclusions: Need for Reform of the Architecture for Supervision and Crisis Management

References

Cross-border banking can take place in subsidiaries or branches. In common terminology, a subsidiary is a host country legal entity with its own capital as a buffer against losses and is subject to host country regulation, supervision, and legislation. A host country branch, by ...