Factors affecting the foreign banking presence in the U.S.

Hultman, Charles W.; McGee, L. Randolph

doi:10.1016/0378-4266(89)90049-6

Cited by 136 publications

(51 citation statements)

References 2 publications

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“…Nigh et al (1986) showed that United States banks that went multinational did so in an attempt to cater to the needs of United States firms that operated abroad. A similar result was found by Hultman and McGee (1989) who showed that foreign banks operating in the United States penetrated the United States banking market to offer financial services to their home country customers. Berger et al (1995), cited in Hryckiewicz and Kowalewski (2008), argue that larger banks have diversified customers globally and therefore they have an incentive to follow these customers when they move abroad.…”

Section: Literature Reviewsupporting

confidence: 67%

Barriers And Challenges Restraining Zimbabwean Banks In Going Multinational

Mlambo¹,

Mapondera²,

Tenderere³

2015

IBER

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Section: Literature Reviewsupporting

confidence: 67%

Barriers And Challenges Restraining Zimbabwean Banks In Going Multinational

Mlambo¹,

Mapondera²,

Tenderere³

2015

IBER

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“…These enter foreign markets where their home customers are present because of the informational advantage with respect to their domestic customers. (Hultman and McGee, 1989;Yamori, 1998) This is the so-called "follow-the-customer" hypothesis and it is based on the argument that the costs of information-intensive products prevent banks from entering into licensing and franchising arrangements.…”

Section: Resultsmentioning

confidence: 99%

Trademarking activities and total factor productivity: Some evidence for British commercial banks using a metafrontier approach

Duygun

Sena

Shaban

2016

Journal of Banking & Finance

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In this paper, we compute a non-parametric Metafrontier Malmquist index to evaluate the Total Factor Productivity (TFP) change among UK-based trademarking and non-trademarking commercial banks between 2005 and 2013. The use of the metafrontier approach allows us to: a) identify the drivers of TFP growth for each group of banks, b) compare the TFP growth of each group to the TFP growth experienced by the whole industry, and c) assess the extent to which the former catches up with the latter measured along the metafrontier. Our results suggest that TFP has been increasing among trademarking banks up to the onset of the financial crisis but this process has since reversed. The catch-up indexes suggest that both groups of banks were catching up with the metafrontier up to the financial crisis although the drivers of this process differed between the two groups. After the financial crisis, improvements in technology have been driven by a small number of commercial banks i.e. the non-trademarking banks. These results suggest that a large section of the commercial banking sector has not been able to overcome the effects of the financial crisis.

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“…The empirical evidence largely supports this follow-the-customer hypothesis, that is, the informational advantage with respect to their domestic customers drives banks to set up international banking activities where their home customers are present (see, amongst many others, Hultman and McGee, 1989;Yamori, 1998). There are a few studies, however, that do not find support for this hypothesis.…”

mentioning

confidence: 80%

What factors cause foreign banks to stay in London?

Clare

Gulamhussen²,

Pinheiro³

2013

Journal of International Money and Finance

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This is the accepted version of the paper.This version of the publication may differ from the final published version. Permanent repository link AbstractThe banking literature focuses extensively on the phenomenon of bank entry and pays less attention to the factors driving the continuation of banking activities in foreign markets. In this paper, we analyze this important, but overlooked, issue by constructing a unique database of foreign banks that continue operating and those that have withdrawn from arguably the world's most international banking center -London. This new data set comprises information on 408 offices from 77 countries spanning the period from 1945 to 1999, giving us 4,643 observations, of which 2,795 represent offices that continue operating and 1,848 that withdrew from London during this period. Our empirical work shows that the continuation of international banking activity in London is positively related to: the initial organizational form; the experience in the local market; and the size of local operations. We also find that continuation of banking activities is negatively related to the presence of domestic competitors and to the geographical distance of the home country to London. We also find that higher global economic activity increases the likelihood of international banking operations continuing in London; however, the more volatile the global economic environment, the greater the prospect of a cessation of this activity.

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Factors affecting the foreign banking presence in the U.S.

Cited by 136 publications

References 2 publications

Barriers And Challenges Restraining Zimbabwean Banks In Going Multinational

Barriers And Challenges Restraining Zimbabwean Banks In Going Multinational

Trademarking activities and total factor productivity: Some evidence for British commercial banks using a metafrontier approach

What factors cause foreign banks to stay in London?

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