This makes the affiliates banks achieve the same status of the subsidiary banks because the latter will be least affected in relation to the turmoil. If the crisis was hard on their parent banks, then the affiliates banks would have required to stand on their own. The domestic banks in contrast could receive financial bails during the financial crisis hence offsetting the difference that existed between them and subsidiary of the foreign banks (Mihaljek, 2011, p.44). During the global financial crisis, both the local and the foreign owned banks had to reduce their profit target hence, the diminishing factor of whether one is an affiliate or the other is a subsidiary. Therefore, the financial crisis affected all the banks independent of whether they were subsidiary or affiliates.

3. What are the strengths and weaknesses of the capital positions of Australian

and German banks in the wake of the GFC?

The...
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