Hence, all else equal, one could expect global retail banks to have a preference for subsidiarization, while global universal banks for branching. 11 The subsidiary structure may work well for retail banks, as it may benefit from a local management team that is fully accountable for the performance of an affiliate focused on local retail operations. There is a benefit to a management team that has a deep understanding of the local market and a greater ability to obtain local funding. On the other hand, the subsidiary structure may be less suitable for universal and investment banks because it could constrain.
