subsidiarisation  •  Main advantages of local incorporation are: –  Ring fenced capital within the host country  –  Easier to define laws of which jurisdiction apply  –  Better corporate governance, local board of directors  –  Effective control in a banking crisis and enables host country authorities to act more independently as against branch operations  –  Regulatory comfort  •  Potential down side risk could be domination of the domestic financial system by Wholly Owned Subsidiaries (WOS) of foreign banks.
All in all, then, cash boasts a unique combination of characteristics. And that means it chimes with what consumers want, in many respects. The Bundesbank and the Eurosystem are therefore committed to ensuring that euro cash will remain available in the future as a means of payment and a store of value. 2/3  BIS - Central bankers' speeches  4 What comes next?