Do Banks Benefit from Internationalization? Revisiting the Market Power-Risk Nexus PDF Download
Are you looking for read ebook online? Search for your book and save it on your Kindle device, PC, phones or tablets. Download Do Banks Benefit from Internationalization? Revisiting the Market Power-Risk Nexus PDF full book. Access full book title Do Banks Benefit from Internationalization? Revisiting the Market Power-Risk Nexus by Claudia M. Buch. Download full books in PDF and EPUB format.
Author: Claudia M. Buch Publisher: ISBN: Category : Languages : en Pages : 52
Book Description
Recent developments on international financial markets have called the benefits of bank globalization into question. Large, internationally active banks have acquired substantial market power, and international activities have not necessarily made banks less risky. Yet, surprisingly little is known about the actual link between bank internationalization, bank risk, and market power. Analyzing this link is the purpose of this paper. We jointly estimate the determinants of risk and market power of banks, and we analyze the effects of changes in terms of the number of foreign countries (the extensive margin) and the volume of foreign assets (the intensive margin). Our paper has four main findings. First, there is a strong negative feedback effect between risk and market power. Second, banks with higher shares of foreign assets, in particular those held through foreign branches, have higher market power at home. Third, holding assets in a large number of foreign countries tends to increase bank risk. Fourth, the impact of internationalization differs across banks from different banking groups and of different size.
Author: Claudia M. Buch Publisher: ISBN: Category : Languages : en Pages : 52
Book Description
Recent developments on international financial markets have called the benefits of bank globalization into question. Large, internationally active banks have acquired substantial market power, and international activities have not necessarily made banks less risky. Yet, surprisingly little is known about the actual link between bank internationalization, bank risk, and market power. Analyzing this link is the purpose of this paper. We jointly estimate the determinants of risk and market power of banks, and we analyze the effects of changes in terms of the number of foreign countries (the extensive margin) and the volume of foreign assets (the intensive margin). Our paper has four main findings. First, there is a strong negative feedback effect between risk and market power. Second, banks with higher shares of foreign assets, in particular those held through foreign branches, have higher market power at home. Third, holding assets in a large number of foreign countries tends to increase bank risk. Fourth, the impact of internationalization differs across banks from different banking groups and of different size.
Author: Alfred Slager Publisher: Springer ISBN: 0230625045 Category : Business & Economics Languages : en Pages : 238
Book Description
Increasingly the world's largest banks have more activity happening internationally. What are the effects of internationalization, and what is a successful business model for the future? This book explores the formulation, implementation and evaluation of internationalization strategies, examining those of the leading banks in eight countries.
Author: Stijn Claessens Publisher: World Bank Publications ISBN: Category : Internacionalizacion - Asia Languages : en Pages : 64
Book Description
April 1998 Asian countries should consider the benefits of opening their financial service sectors more quickly-at the same time that they are liberalizing capital accounts and deregulating domestic financial markets. The internationalization of financial services-eliminating discrimination between the treatment of foreign and domestic providers of financial services and removing barriers to the cross-border provision of financial services-is of global interest, especially in Asia. Most of Asia limits the entry of foreign financial firms much more than otherwise comparable countries do. Empirical evidence for Asia and elsewhere suggests that this slows down institutional development and that, as a result, it costs more to provide financial services. Asian countries could benefit from accelerating the opening of the financial services sector, in conjunction with the further liberalization of capital accounts and domestic deregulation of financial markets. Apart from other benefits, internationalization helps build more robust, efficient financial systems by introducing international practices and standards; by improving the quality, efficiency, and breadth of financial services; and by allowing more stable sources of funds. The ongoing WTO negotiation of financial services under GATS gives countries the opportunity to commit to opening their financial sectors. Safeguards can be built into the process, and the liberalization can be phased in gradually. This paper-a product of the Economic Policy Division, Poverty Reduction and Economic Management Network-is part of a larger effort in the network to study financial reform in developing countries. The paper was written during the summer of 1997, before the East Asia financial crisis and before the conclusion of the WTO negotiations in December 1997.
Author: Federica Sist Publisher: Springer ISBN: 3319782770 Category : Business & Economics Languages : en Pages : 107
Book Description
This book reviews banking internationalization by considering the new paradigms of globalization. The author primarily analyses why and how banks internationalize through equity deals, and the effect of regulation and market integration on the formation of deals, which allows authorities to manage the banking structure. This is a unique work that describes the relevance of the ownership model and cultural features of the partners and the key factors that help in choosing the market in which the banks bring activities abroad. The book addresses market characteristics, and new scenarios that should impact banks’ internationalization strategies and ability to achieve success in deals that capture the attention of both researchers and practitioners.
Author: Carmela D'Avino Publisher: Routledge ISBN: 9781032310602 Category : Languages : en Pages : 0
Book Description
This book offers a comprehensive understanding of the business model, challenges and benefits of international banks. It features banks that are global and highlights their overseas activities. It documents the recent trends in international banking activity and serves as a one-stop-shop for students and scholars.
Author: Nicola Cetorelli Publisher: DIANE Publishing ISBN: 1437933874 Category : Business & Economics Languages : en Pages : 41
Book Description
Global banks played a significant role in transmitting the 2007-09 financial crisis to emerging-market (EM) economies. The authors examine adverse liquidity shocks on main developed-country banking systems and their relationships to EM across Europe, Asia, and Latin Amer., isolating loan supply from loan demand effects. Loan supply in EM across Europe, Asia, and Latin Amer. was affected significantly through three separate channels: (1) a contraction in direct, cross-border lending by foreign banks; (2) a contraction in local lending by foreign banks¿ affiliates in EM; and (3) a contraction in loan supply by domestic banks, resulting from the funding shock to their balance sheets induced by the decline in interbank, cross-border lending. Charts and tables.
Author: Mireille Ibrahim El-Khoury Publisher: ISBN: Category : Banks and banking Languages : en Pages : 236
Book Description
Today, companies act world-wide to gain success and increase the growth and profit. Nowadays, they need to do this to be competitive on the ever changing market. One of the most important things to have in mind when thinking of expanding to other countries is which entry mode to choose. There are several ways of entering a market and if you do it right you might be very successful, but if you do not spend time on this decision the internationalization process can become very short and the company can lose a lot of capital. With this thesis I want to investigate how BBAC bank, a Lebanese bank made its presence into the international market, which kind of entry modes it went for. In the thesis I have also gone in to the factors that have been of high importance when making the decision on why it chose the Iraqi market and also which kind of entry mode. My main findings after having made this thesis is that it was the profit and growth potential the was the main driving force for establishing on the Iraqi market, but also the short distance and the low costs of going in on the market, and even the know-how of the market in question and resources of the company have been important factors.
Author: Cansu Eray Publisher: Springer Nature ISBN: 3030368793 Category : Business & Economics Languages : en Pages : 108
Book Description
This book presents a systematic review of the literature on the foreign expansion decisions of multinational banks (MNBs). With today's increasing level of globalization, many banks have expanded their activities internationally to take advantage of new opportunities in different markets. As each extension strategy brings distinctive benefits and challenges, finding an optimal approach to internationalization plays a crucial role in maximizing the advantages while decreasing the drawbacks under changing conditions. After screening 141 papers, 28 articles from leading international research journals were selected according to defined criteria in order to provide a synthesized framework connecting MNBs’ decisions to enter foreign markets with the reasons and consequences. The book argues that the MNBs’ main motivations for foreign expansion are related to location and ownership factors. Based on the priorities of these motives, MNBs can choose cross-border lending, greenfield investment or acquisition as an entry mode. Since each has its own benefits and challenges, the chosen strategy has further implications for both the profitability of MNBs and the economic conditions of the host country regarding the competition level, lending pattern to small and medium enterprises (SMEs), market interest rates and financial stability. After establishing a link between the main drivers of foreign expansion, the entry mode choices, and the impacts of foreign bank presence in the host country, the book offers managers of MNBs insights into the further implications. Highlighting the gaps in literature, it also appeals to researchers looking for future areas of study.
Author: Stijn Claessens Publisher: Springer ISBN: Category : Business & Economics Languages : en Pages : 490
Book Description
The internationalization of financial services is an important issue for the strengthening and liberalizing of financial systems in developing countries. There has been considerable support for the view that internationalization can assist countries
Author: Claudia M. Buch
Author: Claudia M. Buch
Author: Claudia M. Buch
Author: Alfred Slager
Author: Stijn Claessens
Author: Federica Sist
Author: Carmela D'Avino
Author: Nicola Cetorelli
Author: Mireille Ibrahim El-Khoury
Author: Cansu Eray
Author: Stijn Claessens