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FDI and Internationalization: Evidence from U.S. Subsidiaries of Foreign Banks


  • Adrian E Tschoegl

    (The Wharton School of the University of Pennsylvania)


Nine foreign banks own the ten largest U.S. affiliates or subsidiaries of foreign banks. These account for 86% of the assets in affiliates and subsidiaries. Their histories suggest that most now represent an attempt by the parents to grow outside the confines of home markets. Original motives for their establishment have included ethnic banking and operational stability stemming from geographical dispersion. There is one major instance of acquiring capabilities, but it does not involve retail banking. The dispersal of national origins suggests that bank-specific capabilities are the primary source of the parents' competitive advantage. Being from English speaking countries also appears to help. Lastly, the growth of the affiliates and subsidiaries has not come from incremental growth but rather from a rearrangement of assets among banks.© 2002 JIBS. Journal of International Business Studies (2002) 33, 805–815

Suggested Citation

  • Adrian E Tschoegl, 2002. "FDI and Internationalization: Evidence from U.S. Subsidiaries of Foreign Banks," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 33(4), pages 805-815, December.
  • Handle: RePEc:pal:jintbs:v:33:y:2002:i:4:p:805-815

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    Cited by:

    1. CASTANER, Xavier & GENC, Mehmet, 2004. "Country Institutional Differences and Multinational Advantage in Banking," Les Cahiers de Recherche 792, HEC Paris.
    2. Adrian E. Tschoegl, 2004. "Internationalization and the Rearrangement of Ownership of Firms and Parts of Firms: Grindlays Bank, 1828-2000," Economic History 0405001, EconWPA.
    3. Adrian E. Tschoegl, 2000. "The Key to Risk Management: Management," Center for Financial Institutions Working Papers 99-42, Wharton School Center for Financial Institutions, University of Pennsylvania.
    4. Adrian E. Tschoegl, 2004. "Financial Crises and the Presence of Foreign Banks," International Finance 0405016, EconWPA.
    5. Petrou, Andreas P. & Thanos, Ioannis C., 2014. "The “grabbing hand” or the “helping hand” view of corruption: Evidence from bank foreign market entries," Journal of World Business, Elsevier, vol. 49(3), pages 444-454.
    6. Tschoegl, Adrian E., 2004. "Who owns the major US subsidiaries of foreign banks?: A note," Journal of International Financial Markets, Institutions and Money, Elsevier, vol. 14(3), pages 255-266, July.
    7. Petrou, Andreas, 2007. "Multinational banks from developing versus developed countries: Competing in the same arena?," Journal of International Management, Elsevier, vol. 13(3), pages 376-397, September.
    8. Cheung, Fanny S.L. & Leung, Wing-Fai, 2007. "International expansion of transnational advertising agencies in China: An assessment of the stages theory approach," International Business Review, Elsevier, vol. 16(2), pages 251-268, April.
    9. Ekman, Peter & Hadjikhani, Annoch Isa & Pajuvirta, Andreas & Thilenius, Peter, 2014. "Tit for tat and big steps: The case of Swedish banks’ internationalization 1961–2010," International Business Review, Elsevier, vol. 23(6), pages 1049-1063.
    10. Zhu, Hong & Eden, Lorraine & Miller, Stewart R. & Thomas, Douglas E. & Fields, Paige, 2012. "Host-country location decisions of early movers and latecomers: The role of local density and experiential learning," International Business Review, Elsevier, vol. 21(2), pages 145-155.

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