Globalization of financial institutions: evidence from cross-border banking performance

Allen Berger (), Robert DeYoung, Hesna Genay and Gregory Udell ()

No 2000-04, Finance and Economics Discussion Series from Board of Governors of the Federal Reserve System (U.S.)

Abstract: We address the causes, consequences, and implications of the cross-border consolidation of financial institutions by reviewing several hundred studies, providing comparative international data, and estimating cross-border banking efficiency in France, Germany, Spain, the U.K., and the U.S. during the 1990s. We find that, on average, domestic banks have higher profit efficiency than foreign banks. However, banks from at least one country (the U.S.) appear to operate with relatively high efficiency both at home and abroad. If these results continue to hold, they do not preclude successful international expansion by some financial firms, but they do suggest limits to global consolidation.

Keywords: International finance; Banks and banking, International; Bank mergers (search for similar items in EconPapers)
Date: 2000
New Economics Papers: this item is included in nep-ind
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Related works:
Working Paper: Globalization of financial institutions: evidence from cross-border banking performance (1999)
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