Subsidiary vs. Branch Banks: Are Their Balance Sheet Compositions Converging?
Journal Title: International Journal of Academic Research in Accounting, Finance and Management Sciences - Year 2016, Vol 6, Issue 4
Abstract
Presumably, foreign banks open subsidiaries and branches to perform different tasks. This paper studies the balance sheet composition of subsidiary and branch banks, testing for differences across groups and periods. We use as laboratory of analysis the Luxembourg banking sector, which is composed mainly by foreign banks. Non-parametric methods yield several findings. First, specialisation and heterogeneity vary across years as well as across different market segments. Second, comparing subsidiaries and branches, estimated distributions across banks have been relatively similar for Interbank Loans but have become rather different for Interbank Deposits. For Customer Loans and Customer Deposits, the differences across groups are generally greater, especially for Customer Deposits. Third, in 2009 the financial crisis generally sharpened the differences between subsidiaries and branches for all variables considered. Fourth, long-term changes between 1995 and 2007 appeared to be (temporarily?) reversed between 2007 and 2009 by the financial crisis.
Authors and Affiliations
Claudia Curi
Keywords
Related Articles
- EP ID EP178481
- DOI 10.6007/IJARAFMS/v6-i4/2355
- Views 96
- Downloads 0
Alignment between Board of Directors Roles and Top Management Leadership Styles. An Empirical Study on Defense and Security industry in the Hashemite Kingdom of Jordan
This research aims to investigate the existence of the alignment between Top management leadership styles (Transformational and Transactional) and the Board of Directors roles (Monitor, Evaluate & Influence and Initiate...
Analysis of Final Consumption, Gross Investment, the Changes in Inventories and Net Exports Influence of GDP Evolution, by Multiple Regression
Cultural Factors and Audit Quality. Evidence from Nigeria
The purpose of this study is to find out the perception of professional accountants in Nigeria on how some cultural factors affect audit quality. A survey research design was adopted for the study. A questionnaire survey...
The Role of Single currency for Countries Economic Development: a Case Study of the East African Community
Ever since the re-introduction of the Eastern Africa Community (EAC), there has been a clamor for the introduction of a single currency. This is because the effect of multiple currencies in cross-border transaction has l...
Study Effective Factors on Employees’ Empowerment by a Model Based on Conger & Kanungo Model; Case Study: Social Security Organization of Bandar Abbas (Iran)