Journal of Banking & Finance Vol. 27 No. 3 2003

To what extent will the banking industry be globalized? A study of bank nationality and reach in 20 European nations

Allen N. Berger^1,2; Qinglei Dai³; Steven Ongena⁴; David C. Smith^1,2

¹ Federal Reserve Board of Governors · ² Federal Reserve · ³ BI Norwegian Business School · ⁴ Tilburg University

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 2000 foreign affiliates of multinational corporations operating in 20 European nations and over 250 banks that serve them. 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.

DOI

10.1016/s0378-4266(02)00386-2

Volume

27

Issue

3

Pages

383-415

Language

en

Sources

openalex crossref bibtex:phds-export.bib

Cite

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