Regulatory Arbitrage and Cross-Border Syndicated Loans

• Tác giả: Balint L Horvath
• Ngôn ngữ: eng
• Ký hiệu phân loại: 332.3 Credit and loan institutions
• Thông tin xuất bản: World Bank, Washington, DC, 2019
• Bộ sưu tập: Tài liệu truy cập mở
• ID: 314842
• Chủ đề: 1. CREDITOR RIGHTS; 2. INTERNATIONAL LENDING; 3. MULTINATIONAL BANK; 4. REGULATION; 5. SYNDICATED LOANS

Tóm tắt

This paper investigates how international regulatory and institutional differences affect lending in the cross-border syndicated loan market. Lending provided through a foreign subsidiary is subject to subsidiary-country regulation and institutional arrangements. Multinational banks' choices between loan origination through the parent bank or through a foreign subsidiary provide information about these banks' preferences to operate in countries with varying regulations and institutions. The results indicate that international banks have a tendency to switch loan origination toward countries with less stringent bank regulation and supervision consistent with regulatory arbitrage, but that they prefer to originate loans in countries with higher-quality institutions related to financial market monitoring, creditor rights, and the speed of contract enforcement.