This paper investigates the effects of home country banking regulations on the performance of foreign banks in Luxembourg's financial center. We control for the main regulatory indicators, such as capital requirements, private monitoring, official disciplinary power and restrictions on bank...

How do foreign banks respond to financial crises? Does their response depend on their organizational form, size, and nationality? Do foreign banks perform better than domestic banks? In this chapter, we address all these questions by examining the performance of banks operating in the Luxembourg...