From the perspective of financial stability, neither model in all cases reduces the probability of failure or the cost of failure of a banking group. The branch structure may provide an affiliate (or parent) and, hence, the group as a whole with greater ability to withstand adverse shocks that do not threaten the viability of the group, because it enables the banking group to more easily mobilize and re-direct funds from healthy affiliates to other affiliates (or parent) that suffer losses. At the same time, the branch structure also obligates the group to cover fully all losses generated in branches
