Globalization of financial institutions: evidence from cross-border banking performance
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.Download Info
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Paper provided by Board of Governors of the Federal Reserve System (U.S.) in its series Finance and Economics Discussion Series with number 2000-04.Length:
Date of creation: 2000
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Handle: RePEc:fip:fedgfe:2000-04
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Related research
Keywords: International finance ; Banks and banking; International ; Bank mergers;Other versions of this item:
- Allen N. Berger & Robert DeYoung & Hesna Genay & Gregory F. Udell, 1999. "Globalization of financial institutions: evidence from cross-border banking performance," Working Paper Series WP-99-25, Federal Reserve Bank of Chicago.
- NEP-ALL-2000-04-17 (All new papers)
- NEP-IND-2000-04-17 (Industrial Organization)
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