@techreport{3e62fc2cfa544699ba524b9072521d44,
title = "Regulatory arbitrage and cross-border syndicated loans",
abstract = "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{\textquoteright} choices between loan origination through the parent bank or through a foreign subsidiary provide information about these banks{\textquoteright} preferences to operate in countries with varying regulations and institutions. Our results indicate that international banks have a tendency to switch loan origination towards 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.",
keywords = "regulator arbitrage, creditor rights",
author = "Asli Demirguc-Kunt and Horvath, {Balint L.} and Harry Huizinga",
note = "CentER Discussion Paper Nr. 2019-028",
year = "2019",
month = oct,
day = "9",
language = "English",
volume = "2019-028",
series = "CentER Discussion Paper",
publisher = "CentER, Center for Economic Research",
type = "WorkingPaper",
institution = "CentER, Center for Economic Research",
}