Multinational banks: Supranational resolution regimes and the importance of capital regulation
b'The lack of coordination in the resolution of multinational banks has led to demands\\nfor the increased centralization of resolution regimes. However, as this\\npaper argues, the anticipation of resolution procedures affects the incentives of\\nhost countries to impose capital standards on their resident banks. Critically, it\\nis shown that overall welfare can even be decreased by introducing a centralized\\nresolution regime without fully centralizing capital requirements. As, in the aftermath\\nof the financial crisis, only countries that are not part of a supranational\\nresolution regime unilaterally and significantly increased the capital requirements\\nfor their largest resident banks, this paper can help to understand and study the\\nheterogeneity of the observed regulatory approaches.'