According to IMF studies, the so-called troubling costs are decisive for a bank branch abroad. In particular, these are special expenses due to (by reason of) – unreliable infrastructure in the host country, – problems with supervision, such as excessive regulatory density; opaque regulations; arbitrary application, – widespread bribery payments to various authorities, – high levels of crime in the country as a whole, in the financial sector or in particular with regard to foreign companies, and – labor law uncertainties (contract enforcement difficulties). If these costs are too high, a cooperation with domestic banks is always the cheaper way. – See agency, alliances, cross-border, alignment, informal, foreign enterprise units, foreign branch, guard money, credit institution, cross-border, onshore banking, representative office, ring fencing.
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University Professor Dr. Gerhard Merk, Dipl.rer.pol., Dipl.rer.oec.
Professor Dr. Eckehard Krah, Dipl.rer.pol.
E-mail address: info@ekrah.com
https://de.wikipedia.org/wiki/Gerhard_Ernst_Merk
https://www.jung-stilling-gesellschaft.de/merk/
https://www.gerhardmerk.de/