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...

For an international sample of banks, we construct measures of a bank's absolute size and its systemic size defined as size relative to the national economy. We then examine how a bank's risk and return, its activity mix and funding strategy, and the extent to which it faces market discipline...