The international financial role of U.S. commercial banks: Past and future

Porzecanski, Arturo C.

doi:10.1016/0378-4266(81)90004-2

Cited by 5 publications

(4 citation statements)

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“…Banks from developed countries often provide credits to developing countries (Dymski, 2003), as marginal returns are usually higher in less developed regions (Healey, 1995). Despite extensive studies regarding advanced countries' overseas lending (Goldberg, 2002;Porzecanski, 1981), that of large developing countries such as China is largely left uncharted.…”

Section: Introductionmentioning

confidence: 99%

Does China's Overseas Lending Favor the One Belt One Road Countries?

Zhang

Fang

2020

SSRN Journal

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Section: Introductionmentioning

confidence: 99%

Does China's Overseas Lending Favor the One Belt One Road Countries?

Zhang

Fang

2020

SSRN Journal

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“…In these cases a negative link may be suggested, indicating a substitution effect between foreign and domestic loans. Indeed, Porzecanski's (1981) finding of a slow-down of U.S. banks' international activity in the late seventies (coupled with intensive domestic bank growth in the U.S.) implies some substitutability between foreign and domestic activities. As Porzecanski (1981) noted, risk exposure on foreign assets was rising, while the yield on them was dropping, relative to domestic assets.…”

Section: Volume 31 Number 1 2005 23mentioning

confidence: 99%

“…Indeed, Porzecanski's (1981) finding of a slow-down of U.S. banks' international activity in the late seventies (coupled with intensive domestic bank growth in the U.S.) implies some substitutability between foreign and domestic activities. As Porzecanski (1981) noted, risk exposure on foreign assets was rising, while the yield on them was dropping, relative to domestic assets. Moreover, examining diversification in stock portfolios across countries, Dumas and Solnik (1995) and De Santis and Gerard (1997) noted that international investments involve currency risk in addition to market risk.…”

Section: Volume 31 Number 1 2005 23mentioning

confidence: 99%

A theoretical model of bank’s motives for becoming a multinational bank and conditions for its lending abroad substituting or supplementing its domestic loan business

Bulmash

2005

Managerial Finance

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Article information:To cite this document: Samuel B. Bulmash, (2005),"A theoretical model of bank's motives for becoming a multinational bank and conditions for its lending abroad substituting or supplementing its domestic loan business", Managerial Finance, Vol. 31 Iss 1 pp. 23 -40 Permanent link to this document: http://dx.If you would like to write for this, or any other Emerald publication, then please use our Emerald for Authors service information about how to choose which publication to write for and submission guidelines are available for all. Please visit www.emeraldinsight.com/authors for more information. About Emerald www.emeraldinsight.comEmerald is a global publisher linking research and practice to the benefit of society. The company manages a portfolio of more than 290 journals and over 2,350 books and book series volumes, as well as providing an extensive range of online products and additional customer resources and services.Emerald is both COUNTER 4 and TRANSFER compliant. The organization is a partner of the Committee on Publication Ethics (COPE) and also works with Portico and the LOCKSS initiative for digital archive preservation. AbstractMany empirical studies have examined the motivation for doing business abroad by the multinational corporation (hence MNC). The theory of the MNC received less attention. Even less has been published on the theory of the multinational bank (hence MB). This paper fills the gap. It analyzes the motives and adds a particular perspective: A model driven by supplementation and substitution of business as motivation. While these two elements by themselves are not new to economic theory, their application to the multination bank, as is done in this paper, offers a useful new perspective. While many other studies have concentrated on risk reduction as the motive for asset diversification by the MB, this paper takes a different approach. Specifically, this paper presents a theoretical framework that shows that the conditions for going abroad to enhance the bank's domestic business (supplementation motive) are different from those that motivate the bank to substitute international business for domestic business (substitution motive). The model provides analytical insights into the behavior of the international bank that can interest scholars and bank regulators. The model can also serve as a basis for future related Multinational Corporate research in general, as well as for other bank specific studies.

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“…-For the mid-seventies Porzecanski (1981) presented estimates for the ten internationally most active US-banks, according to which the return on domestic assets was significantly outpaced by profit margins on international assets. Moreover, available evidence for US-banks pointed to particularly high returns in lending to DCs (O'Brien, 1981; for further details, see Salomon Brothers, 1980 Campbell, 1982b, p. 93) .…”

Section: Bank Lending To Developing Countries: Some Major Charactmentioning

confidence: 99%

Bank Lending to Developing Countries and Possible Solutions to International Debt Problems

Nunnenkamp

1985

Kyklos

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The international financial role of U.S. commercial banks: Past and future

Cited by 5 publications

References 1 publication

Does China's Overseas Lending Favor the One Belt One Road Countries?

Does China's Overseas Lending Favor the One Belt One Road Countries?

A theoretical model of bank’s motives for becoming a multinational bank and conditions for its lending abroad substituting or supplementing its domestic loan business

Bank Lending to Developing Countries and Possible Solutions to International Debt Problems

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