|
| |
N° 273 |
  |
| December 2007 |
| International Exposure of French Banks: Balancing Opportunities and Risks |
Olena Havrylchyk
Emilia Jurzyk |
|
| As a number of European banks was touched by the American subprime crisis, there is a new urgency to consider the
pros and cons of the ongoing globalization of the banking sector. In this letter, we aim to describe foreign exposures of
French banks and compare them to the situation in other developed countries. Foreign subsidiaries and branches of
French banks have brought them new sources of profits. However, these profits appear to be more modest when we
consider higher risks of investing in countries with unfamiliar cultures, poor quality of institutions and uncertain
business environment. In addition, the globalization of banking has diminished the benefits of diversification and has
increased the risks of contagion. |
Abstract |
| |
|
| To visualise
the full text document, use Acrobat
Reader |
Full text (pdf) |
| |
|
|
|
|
|
|
|
