Publication series : IMF Staff Discussion Notes
Author: Jonathan Fiechter Ms. Inci Ötker Anna Ilyina Michael Hsu Mr. Andre Santos Jay Surti
Publisher: INTERNATIONAL MONETARY FUND
Publication year: 2011
E-ISBN: 9781616350406
P-ISBN(Paperback): 9781455288564
Subject: F831.2 金融组织与业务
Language: ENG
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Description
This study proposes to make an assessment of the trade-offs emanating from the adoption of the stand-alone subsidiarization (SAS) model of global banking. In the aftermath of the global financial crisis, the United Kingdom Financial Services Authority (FSA) proposed SAS as a possible practical avenue to lessen risk of contagion of macro-financial problems by re-organizing internationally active banks into financially self-sufficient, independently management constellations. While SAS exerts a potential stabilizing influence on global financial markets by containing financial sector dislocation at its point of origin, its costsin terms of potential decrease in global capital flows, a discrete change in financial institutions business models and returns, and risk management capacity of globally active institutionsmay be substantial. The paper will assess the distribution of these benefits and costs across various stakeholdershome and host countries and the financial institutionsat different points in the business cycle. It will also examine whether some intermediate solutions recently proposed by the Fund provide a more practical way forward in view of the cost-benefit analysis of SAS.