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The poor performance of foreign bank subsidiaries: were the problems acquired or created?

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  • Faith Kasirye
  • Joe Peek
  • Eric Rosengren

Abstract

We examine foreign acquisitions of United States banks around the time of the ownership change to determine whether the observed poor performance of foreign subsidiaries is the result of changes in business strategy or the preexisting characteristics of the target bank. We find that many of the problems were already present at the time of acquisition. However, changes in business strategy by the foreign owners were generally not successful in raising the banks's performance level to that of its domestic peers.

Suggested Citation

  • Faith Kasirye & Joe Peek & Eric Rosengren, 1998. "The poor performance of foreign bank subsidiaries: were the problems acquired or created?," Working Papers 98-3, Federal Reserve Bank of Boston.
    • Handle: RePEc:fip:fedbwp:98-3
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    References listed on IDEAS

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