Galindo, Arturo; Micco, Alejandro; Powell, Andrew - Escuela de Negocios, Universidad Torcuato Di Tella - 2004
We suggest that foreign banks may represent a trade-off for their developing country hosts. A portfolio model is developed to show that a more diversified international bank may be one of lower overall risk and less susceptible to funding shocks but may react more to shocks that affect expected...