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Multinational banking and microfinance an analysis based on the paradigm "OLI" revisited

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  • Célestin Mayoukou

    (CREAM - Centre de Recherche en Economie Appliquée à la Mondialisation - UNIROUEN - Université de Rouen Normandie - NU - Normandie Université - IRIHS - Institut de Recherche Interdisciplinaire Homme et Société - UNIROUEN - Université de Rouen Normandie - NU - Normandie Université)

  • Pierre-Bruno Ruffini -Edehn

    (FAI - Université Le Havre Normandie - Faculté des Affaires Internationales - ULH - Université Le Havre Normandie - NU - Normandie Université)

Abstract

This working paper deals with some aspects of the internationalization of microfinance in emerging and developing countries. In several of these countries, multinational banks (MNBs) have become increasingly interested in microfinance. These banks have thus gradually become direct or indirect providers of microfinance services. We propose a two-step process for analyzing the entry of MNBs into microfinance on such foreign markets. The first step is conceptual and theoretical. We propose an original typology of modes of presence of MNBs in microfinance activity abroad. Then we analyze this issue with the help of the "Ownership-Location-Internalization (OLI) paradigm" (or "eclectic theory"). This in-depth investigation provides an appropriate framework for analyzing empirically the modes of entry of MNBS to microfinance. This empirical second step will be the subject of a complementary forthcoming development. JEL: G21, G24, F21. Key words: provision of microfinance services, multinational bank, eclectic (OLI) theory, FDI, entry on foreign banking markets. 2

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  • Célestin Mayoukou & Pierre-Bruno Ruffini -Edehn, 2016. "Multinational banking and microfinance an analysis based on the paradigm "OLI" revisited," Post-Print hal-02350116, HAL.
    • Handle: RePEc:hal:journl:hal-02350116
    Note: View the original document on HAL open archive server: https://normandie-univ.hal.science/hal-02350116
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    References listed on IDEAS

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    1. Alicia Garcia Herrero & Daniel Navia Simon, 2004. "Determinants And Impact Of Financial Sector Fdi To Emerging," International Finance 0403001, University Library of Munich, Germany.
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    7. Galema, Rients & Lensink, Robert & Spierdijk, Laura, 2011. "International diversification and Microfinance," Journal of International Money and Finance, Elsevier, vol. 30(3), pages 507-515, April.
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    More about this item

    Keywords

    provision of microfinance services; multinational bank; eclectic (oli) theory; fdi; entry on foreign banking markets. 2;
    All these keywords.

    JEL classification:

    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • G24 - Financial Economics - - Financial Institutions and Services - - - Investment Banking; Venture Capital; Brokerage
    • F21 - International Economics - - International Factor Movements and International Business - - - International Investment; Long-Term Capital Movements

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