From Subsidiary to Branch Organization of International Banks


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From Subsidiary to Branch Organization of International Banks

Show simple item record Goldberg, Lawrence G. en_US Sweeney, Richard J. en_US Wihlborg, Clas en_US 2009-02-04T10:24:49Z 2009-02-04T10:24:49Z 2005-12-09T00:00:00Z en_US
dc.description.abstract Nordea is the first major international bank planning to operate important host country activities in branches as the Second European banking directive envisions rather than as subsidiaries. Nordea is the result of mergers of roughly equal-size universal banks in four Nordic countries with the intention to reap economies of scale and scope by providing services in an integrated organization. Nordea has so far operated under a legal structure with subsidiaries in the host countries. When the new branch organization is implemented, EU directives specify that the home country is responsible for supervision, regulation as well as deposit insurance. Supervisors in all involved countries are challenged by this prospect and they are negotiating to obtain an acceptable division of responsibilities. We argue that the Nordea case offers an opportunity to implement the EU's vision and to develop institutional foundations for substantial market discipline in banking. In particular, distress resolution and insolvency procedures for banks must be made rule based and credible for host country authorities to accept home country control. en_US
dc.format.extent 25 s. en_US
dc.language eng en_US
dc.relation.ispartofseries LEFIC Working paper;2005-004 en_US
dc.title From Subsidiary to Branch Organization of International Banks en_US
dc.type wp en_US
dc.accessionstatus modt05dec09 miel en_US
dc.contributor.corporation Copenhagen Business School. CBS en_US
dc.contributor.department Institut for Finansiering en_US
dc.contributor.departmentshort LEFIC en_US
dc.contributor.departmentuk Department of Finance en_US
dc.contributor.departmentukshort FI en_US
dc.description.notes In Memory of Larry Goldberg, Dear Friend and Colleague en_US
dc.idnumber x656504195 en_US København en_US
dc.publisher.year 2005 en_US
dc.title.subtitle New Challenges and Opportunities for Regulators en_US

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