Claudia and Linda point to four key findings of the research project: “First, the largest banks in countries tend to be the more complex ones. Yet, even controlling for size, there is substantial
diversity across banking organizations in terms of complexity choices. Second, over the past decade, banking organizations have tended to reduce complexity by limiting the number of affiliates in both domestic and foreign locations. Generally, however, complexity
patterns are fairly persistent. Third, regulatory changes can alter both banking organization complexity and the associated risk profiles. Fourth, the link between complexity and risks involves trade-offs: diversification benefits and reductions in liquidity
risk may weigh against agency problems, monitoring costs, and systemic risk contributions arising from higher complexity.” Overall, a fascinating set of papers on a topic which will continue to pose challenges for academic and policymakers alike.