Efficiency of multinational banks: Impacts of geographic and product loci

Canan Yildirim, Adnan Kasman and Mohamed Azzim Gulamhussen
Additional contact information
Canan Yildirim: ESC [Rennes] - ESC Rennes School of Business
Adnan Kasman: Adnan Menderes Üniversitesi
Mohamed Azzim Gulamhussen: ISCTE-IUL Business School

Post-Print from HAL

Abstract: This paper explores geographic diversification strategies' impact on multinational banks' operational performance within the context of research on globalization and regionalization. We employ a sample of the 49 largest banks from 16 European countries from 2011 to 2018 and proxy operational performance by technical efficiency. We find the impact of geographic diversification on operational performance depends on the locus of geographic diversification—home-regional vs. inter-regional—and the interplay between geographic diversification and banks' functional focus. More specifically, home-regional diversification together with a concentration on non-interest income-generating activities, including fee and commission and trading income, worsens performance, and diversification across regions alongside a focus on non-interest income-generating activities improves performance. Distinct product characteristics' ability to facilitate different regional dispersions has important managerial implications for enhancing the success of geographic diversification strategies, a central but unresolved issue in global banking.

Date: 2023-10
References: Add references at CitEc
Citations:

Published in International Business Review, 2023, 32 (5), pp.102162. ⟨10.1016/j.ibusrev.2023.102162⟩

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:hal:journl:hal-04191115

DOI: 10.1016/j.ibusrev.2023.102162

Access Statistics for this paper

More papers in Post-Print from HAL
Bibliographic data for series maintained by CCSD ().