The subsidiarity principle and the negative spread. A case in point for the governance of state-owned banks.
This paper presents a new perspective to address some problems that arise from the mixed governance nature of a state-owned bank. First, it emphasizes that the principle of subsidiarity is at the root of decision-making processes in which the bank becomes involved based on political demands. Second, it focuses on the uses and misuses of the principle of subsidiarity, proposing the notion of the subsidiarity portfolio to address misuses and enhance the governance of these institutions.