Entry mode choice of multinational banks

Maria Lehner

Journal of Banking & Finance, 2009, vol. 33, issue 10, 1781-1792

Abstract: When expanding abroad, a multinational bank faces a trade-off between accessing a foreign country via cross border lending or financial foreign direct investment, i.e. greenfield or acquisition entry. We analyze the entry mode choice of multinational banks and explicitly derive the entry mode pattern in the banking industry. Moreover, we show that in less developed banking markets, a trend towards cross border lending and acquisition entry exists. Greenfield entry prevails in more developed markets. Furthermore, we identify a tendency towards acquisition entry in smaller host countries and towards greenfield entry in larger host countries.

Keywords: Foreign; bank; entry; Multinational; banks; Cross; border; lending; Greenfield; Acquisition (search for similar items in EconPapers)
Date: 2009
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Citations: View citations in EconPapers (29)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:jbfina:v:33:y:2009:i:10:p:1781-1792

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