Unité mixte de recherche 7235

Credit risk of foreign bank branches and subsidiaries in Argentina and Uruguay

Michael Brei, Carlos Winograd

The paper presents both theoretical and empirical analysis to explain the differences in credit risks between branches and subsidiaries of foreign banks. Using a model with costly monitoring and asymmetric information (from the perspective of host country regulators and parent banks), we show theoretical evidence that the optimal amount of monitoring increases with the size of foreign affiliates (relative to their parent banks), regardless of whether their legal form is of a branch or subsidiary. In the case of small affiliates, we argue that there is a conflict of interest between parent banks and regulators, the former of which prefer to operate with riskier and ring-fenced subsidiaries, and the latter of which prefer better-monitored and co-insured branches. Using bank-level data on Argentina and Uruguay prior to their financial crises of 2001-02, we find that (i) larger foreign branches have lower ratios of non-performing loans than foreign subsidiaries and smaller branches and (ii) branches headquartered in more developed economies had fewer non-performing loans.


lundi 20 mars 2023

Law, Institutions and Economics in Nanterre (LIEN)

Ambre Nicolle (LMU Munich)

En salle 614 et en distanciel

Competition and value capture in platform markets: Implications for complementor strategy

mardi 21 mars 2023

Recherche et Economie et Socioéconomie Politique, des Institutions et des Régulations (RESPIR)

André Orléan (Paris School of Economics)

Toutes les valeurs sont des espèces d’un même genre

mercredi 22 mars 2023

Économies du monde musulman

Hicham Benamirouche (CREAD, Alger) | Mongi Marzoug (ancien ministre tunisien de l’énergie)

La sécurité énergétique dans la région MENA: une proposition d’évaluation | La transition énergétique dans les pays du MENA

jeudi 23 mars 2023


Benjamin Monnery

Salle 401-402 à 12h

Does the International Criminal Court Reduce Violence Against Civilians?

lundi 27 mars 2023

Professeurs invités

Axel Gautier

jeudi 30 mars 2023

Groupe de travail « Intelligence artificielle »

Paola Tubaro (CREST)

Salle : G614B

Artificial intelligence, labour transformations, and inconspicuous inequalities: women’s work on digital ‘micro-tasking’ platforms

jeudi 30 mars 2023


Morel Tien

Migration et synchronisation des cycles

lundi 3 avril 2023

Law, Institutions and Economics in Nanterre (LIEN)

Stefania Marcassa (CY Cergy)

En salle 614 et en distanciel


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