scispace - formally typeset
Open AccessJournal ArticleDOI

A theory of multinational banking

Herbert G. Grubel
- 01 Jan 1977 - 
- Vol. 30, Iss: 123
Reads0
Chats0
TLDR
In this article, a general theory of multinational banking capable of explaining the phenomenon with the help of a few price-theoretic principles is presented, which is useful in the discussion of policy issues raised by the recent rapid growth of multinational banks and by proposed US legislation designed to curb it.
Abstract
The paper represents a first attempt to develop a general theory of multinational banking capable of explaining the phenomenon with the help of a few price-theoretic principles. Such theorising is useful in the discussion of policy issues raised by the recent rapid growth of multinational banking and by proposed US legislation designed to curb it. The basic analytical question regards the source of comparative advantage. Specifically, the author looks at how a bank abroad can profitably offer lower lending and higher borrowing rates than its domestic competitors and thus attract customers away from them. JEL: F23, F40, G21

read more

Citations
More filters
Journal ArticleDOI

Service Multinationals: Conceptualization, Measurement and Theory

TL;DR: The application of MNE definitions, measurements and theories to international services is still in the infancy, despite the considerable size and growth of this sector as discussed by the authors. But the application of the MNE definition, measurements, and theories for international services are still in their infancy, and they do not require special definitions and theories.
Journal ArticleDOI

Foreign bank activity in the United States: An analysis by country of origin

TL;DR: The authors assesses the extent of the foreign bank presence in the United States and indicates its distribution by country of origin and develops a formal model of determinants of the value of foreign bank assets.
Journal ArticleDOI

The determination of foreign banking location

TL;DR: In this paper, the authors examined the determinants of foreign bank location and found that foreign branching increased very rapidly from about 1960 to the mid-1980s and slowed significantly after 1985.
Journal ArticleDOI

Domestic and international determinants of bank profits: Foreign banks in Australia

TL;DR: The authors developed and tested a model that integrates the existing multinational bank literature with the domestic bank profits literature, and found that profits are a negative function of competitor market share and bank licence status, and a positive function of Australian size and home GDP growth.
Journal ArticleDOI

The Decision to Establish a Foreign Bank Branch or Subsidiary: An Application of Binary Classification Procedures

TL;DR: In this paper, the utility of linear discriminant analysis and maximum likelihood logit analysis as statistical techniques for relating a qualitative dependent variable to a vector of inde? pendent variables was examined for the decision by parent banks as to whether or not to have a subsidiary branch in California (Japan).
Related Papers (5)