0354315 20240103194629.020110117235959.9 18 s. cav_un_epca*03543142077-429X11 (2011)19-36 Multinational bank Contagion Substitution Agency cav_un_auth*0101079 Derviz Alexis Ekonometrie Department of Econometrics E E UTIA-B Department of Econometrics G Ústav teorie informace a automatizace AV ČR, v. v. i. cav_un_auth*0072031 Podpiera J. CZ http://library.utia.cas.cz/separaty/2011/E/derviz-lending behavior of multinational bank affiliates.pdf CEZ:AV0Z10750506 We study the parent influence on lending by affiliates of a multinational bank. In the proposed theoretical model, local lending is influenced by shareholder-affiliate manager delegation and precautionary motives. The outcome is either contagion (the loan volume in the affiliate follows the direction of the parent bank country shock) or performance-based reallocation of funds (substitution), depending on the degree of manager delegation in the affiliate and the liquidity-sensitivity in the parent bank. Empirical investigation, deliberately conducted on a sample not covering the latest financial crisis, shows that also in “normal” times, multinational banks that are likely to delegate lending decisions or be more liquidity-sensitive are more inclined towards contagionist behavior. 2011 AH http://hdl.handle.net/11104/0193349 2011 cav_un_epca*0354314 Risk Governance and Control: Financial Markets & Institutions 2077-429X Roč. 1 č. 1 2011 19 36 PRINT