How Did Foreign Branches Affect Bank Performance during the European Sovereign Debt Crisis?
Date Issued
2015
Date
2015
Author(s)
Hunag, Ying-Chen
Abstract
This paper examines the relationship between the existing foreign branch patterns and the bank performance during the European Sovereign Debt Crisis. Foreign branches have both dark and bright sides. While they may transmit negative shocks from host countries to home countries, they may also allow banks to enjoy diversification benefits. It is found that the results depend on the locations of the banks’ headquarters.
Subjects
bank performance
foreign branch
diversification
European sovereign debt crisis
global banking
Type
thesis