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Multinational banks whose exposure in foreign markets is primarily through subsidiaries may find it easier to exercise an exit option should losses become too high

Multinational banks whose exposure in foreign markets is primarily through subsidiaries may find it easier to exercise an exit option should losses become too high in the event of a major economic crisis; other banks, however, exposed through branches or through direct cross-border lending, as well as through loans to their subsidiaries, may find it walking away from their affiliate far more complicated. (300 words)

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