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Conquering the market: The expansion strategies of Santander and BBVA in Latin America

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  • López-Morell, Miguel Angel
  • Bernabé Pérez, María Mercedes

Abstract

Three decades ago, and with very few precedents, Spain's two principal banking corporations began an intense process of expansion throughout Latin America. Not only did they compete with one other in this new market, but they also faced competition from domestic Latin American banks and other foreign banks. This paper analyses the key elements that encouraged these two banks to enter the Latin American market. It assesses their success or failure in each country they entered, and in the subcontinent as a whole. Finally, it examines the different strategies they used to achieve their aims.

Suggested Citation

  • López-Morell, Miguel Angel & Bernabé Pérez, María Mercedes, 2018. "Conquering the market: The expansion strategies of Santander and BBVA in Latin America," eabh Papers 18-02, The European Association for Banking and Financial History (EABH).
    • Handle: RePEc:zbw:eabhps:1802
    as

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    References listed on IDEAS

    as
    1. Cerutti, Eugenio & Dell'Ariccia, Giovanni & Martinez Peria, Maria Soledad, 2007. "How banks go abroad: Branches or subsidiaries?," Journal of Banking & Finance, Elsevier, vol. 31(6), pages 1669-1692, June.
    2. Adrian E Tschoegl, 1987. "International Retail Banking as a Strategy: An Assessment," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 18(2), pages 67-88, June.
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    More about this item

    Keywords

    Retailing Banks; Latin America; FDI; Global Banks; Bank Profitability;
    All these keywords.

    JEL classification:

    • F3 - International Economics - - International Finance
    • F21 - International Economics - - International Factor Movements and International Business - - - International Investment; Long-Term Capital Movements
    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • N2 - Economic History - - Financial Markets and Institutions
    • N26 - Economic History - - Financial Markets and Institutions - - - Latin America; Caribbean

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