A key consideration for policymakers, then, is whether the trade-off between efficiency and financial stability argues for policies that reflect a preference for certain cross-border banking structures. This paper examines the relative advantages and disadvantages of different organizational structures for cross-border banking groups both from the point of view of the financial groups and of the home/host authorities. It concludes that given the diversity of business lines and the varying objectives and stages of financial development of different countries, there is no one obvious structure that is best suited in all cases for cross- border expansion—one size does not fit all.
