To what Extent will the Banking Industry be Globalized? A Study of Bank Nationality and Reach in 20 European Nations
Preprint
- 1 May 2002
- preprint
- Published by Elsevier in SSRN Electronic Journal
Abstract
We model two dimensions of bank globalization - bank nationality (a bank from the firm's host nation, its home nation, or a third nation) and bank reach (a global, regional, or local bank) - using a two-stage nested multinomial logit model. Our data set includes over 2,000 foreign affiliates of multinational corporations operating in 20 European nations. We find that these firms frequently use host nation banks for cash management services, and that bank reach may be strongly influenced by this choice of bank nationality. Our results suggest limits to the degree of future bank globalization.Keywords
This publication has 24 references indexed in Scilit:
- Information or Regulation: What Drives the International Activities of Commercial Banks?Journal of Money, Credit and Banking, 2003
- The ability of banks to lend to informationally opaque small businessesJournal of Banking & Finance, 2001
- Value Creation at the Ongoing Consolidation of the European Banking MarketsSSRN Electronic Journal, 2001
- Stockholder gains from focusing versus diversifying bank mergersPublished by Elsevier ,2001
- Cross-Border Bank Mergers: What Lures the Rare Animal?SSRN Electronic Journal, 2001
- Distance and International BankingSSRN Electronic Journal, 2001
- Globalization of Financial Institutions: Evidence from Cross-Border Banking PerformanceBrookings-Wharton Papers on Financial Services, 2000
- European lessons on consolidation in bankingJournal of Banking & Finance, 1999
- The consolidation of the financial services industry: Causes, consequences, and implications for the futureJournal of Banking & Finance, 1999
- The determination of foreign banking locationJournal of International Money and Finance, 1996