As a corollary, their subsidiaries will be subject to the same discipline. However, this is clearly not the case. There are some measures that would be useful in addressing these challenges. One of these, which I have already proposed, is to require large local banks to list a percentage of their equity, say 30%, on local stock markets.
This proposal has three advantages: •  First, the presence of minority shareholders in the capital structure and on the boards of large subsidiaries helps to deter parent banks from making decisions that may go against the best interests of the subsidiary. •  Second, the existence of minority shareholders also gives relevance to the work of independent board members.