For an international sample of banks, we construct measures of a bank's absolute size and its systemic size defined as … size relative to the national economy. We then examine how a bank's risk and return, its activity mix and funding strategy … that a bank's interest cost tends to rise with its systemic size can also in part explain why a bank's rate of return on …

institutional arrangements. Multinational banks' choices between loan origination through the parent bank or through a foreign … stringent bank regulation and supervision consistent with regulatory arbitrage, but that they prefer to originate loans in …