Entry Mode Choice of Multinational Banks

Arbeitspapier

When expanding abroad, a multinational bank faces a trade-off between accessing a foreign country via cross border lending or a financial foreign direct investment, i.e. greenfield or acquisition entry. We analyze the entry mode choice of multinational banks and explicitly derive the entry mode pattern in the banking industry. Moreover, we show that in less developed banking markets, a trend towards cross border lending and acquisition entry exists. Greenfield entry prevails in more developed markets. Furthermore, we identify a tendency towards acquisition entry in small and towards greenfield entry in larger host countries.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: Munich Discussion Paper ; No. 2008-26

Classification and Topics

• Classification: Wirtschaft ; International Finance Forecasting and Simulation: Models and Applications ; Banks; Depository Institutions; Micro Finance Institutions; Mortgages ; Mergers; Acquisitions; Restructuring; Voting; Proxy Contests; Corporate Governance ; Oligopoly and Other Imperfect Markets ; Economic Development: Financial Markets; Saving and Capital Investment; Corporate Finance and Governance
• Subject: foreign bank entry ; multinational bank ; cross border lending ; greenfield entry ; acquisition entry ; Internationaler Markteintritt ; Internationale Bank

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Lehner, Maria
• Event: Veröffentlichung
• (who): Ludwig-Maximilians-Universität München, Volkswirtschaftliche Fakultät
• (where): München
• (when): 2008

Further information

• DOI: doi:10.5282/ubm/epub.8222
• Handle: http://hdl.handle.net/10419/104257
• URN: urn:nbn:de:bvb:19-epub-8222-5
• Last update: 10.03.2025, 11:44 AM CET