Finance Seminar with Thorsten Beck, European University Institute

On Friday, April 29, Thorsten Beck, European University Institute, will be giving a seminar on the paper: Supranational cooperation and regulatory arbitrage

Friday, April 29, 2022 - 11:00 to 12:15
The Department of Finance is proud to announce the upcoming seminar with Thorsten Beck, European University Institute
Thorsten Beck will present:
Supranational cooperation and regulatory arbitrage
ABSTRACT: Using data on 113 banking groups, spanning 116 host and 40 home countries, we find that crossborder banks increase lending in a foreign subsidiary when the degree to which their other (foreign) subsidiaries are covered by supervisory cooperation agreements increases. This increase is funded by debt and does not improve profitability, suggesting higher risk-taking. The increase is stronger when supervisory oversight and market discipline in the subsidiary country are weak. Our results are confirmed by syndicated loan data and suggest that supervisory cooperation agreements have negative externalities on third countries, undermining overall effectiveness, and a need to "cooperate on cooperation".             
Solbjerg Plads 3
2000 Frederiksberg
Room: SPs03
The page was last edited by: Department of Finance // 04/25/2022