In practice, a number of other factors are often critical in determining how a parent bank would respond to the realization of such risks independent of the chosen legal form of incorporation. Where the parent’s exposures to the affiliate (either through non-equity funding or revenues) render the host country operations of systemic importance to the health of the parent, extension of capital and liquidity support is equally common to branches and subsidiaries, as not doing so could compromise the survival of the group. During the global financial crisis, Swedish banks provided such support to their Baltic subsidiaries and Austrian and.
