In the absence of effective international cooperation in these areas, resolution of institutions, in the event of a failure within a banking group, may be less costly and less destabilizing if these entities are organized as subsidiaries. Moreover, healthy subsidiaries that operate independently of the parent may, in principle, be better able to survive the failure of the parent or other affiliates. In the event of a restructuring of a banking group, healthy subsidiaries can be spun off from the parent and operate on a stand-alone basis, sold, or placed into conservatorship by host country authorities. Still, this.
