The Internationalization Of Banks: Patterns, Strategies And Performance (palgrave Macmillan Studies In Banking And Financial Institutions)

Increasingly the world's largest banks have more activity happening internationally. What are the effects of internationalization, and what is a successful business model for the future? This book explores the formulation, implementation and evaluation of internationalization strategies, examining those of the leading banks in eight countries. An increasing number of the world's largest banks now have more activities outside their home country than within. But what do we know about the effects of internationalization, and what is a successful business model for the future? This book explores the formulation, implementation and evaluation of internationalization strategies in banking. The international strategies of the world's leading banks in eight countries are examined between 1980 and 2004, strategic patterns are identified and the effects on profitability, stability and shareholder performance are analysed. The results are sobering. Increasing profitability and shareholder return through internationalization turns out to be extremely challenging. Only a few banks are able to turn international banking activities into a success. With the ongoing cross-border consolidation in the banking industry, this book is an important contribution to the internationalization debate and a must-read for bank management, regulators and shareholders Cover......Page 1 Contents......Page 6 List of Tables......Page 8 List of Figures......Page 10 List of Abbreviations......Page 12 Name Conventions......Page 13 Preface......Page 14 1 Introduction......Page 16 1.1 A perspective on internationalization......Page 18 1.2 Aims, objectives and main results......Page 21 1.3 Contents......Page 25 2 Banking since the 1980s: Challenges and Issues......Page 26 2.1 Changing role of banks......Page 27 2.2 Transformation of the banking industry......Page 34 2.3 Emerging economic structures in the European Union......Page 50 2.4 Evolution of financial services and products......Page 52 3.1 The theoretical groundwork for internationalization......Page 57 3.2 Incentives to internationalize......Page 58 3.3 Shaping international organizations......Page 78 4.1 Introduction......Page 83 4.2 Who form the world’s largest banks......Page 84 4.3 Key financial developments......Page 87 5.1 Introduction......Page 102 5.2 How to measure internationalization......Page 103 5.3 Internationalization since the 1980s......Page 105 5.4 Home bias......Page 112 5.5 Regional patterns in internationalization......Page 115 6.1 Identifying internationalization strategies......Page 120 6.2 Internationalization strategies......Page 123 6.3 Accelerating strategy......Page 127 6.4 Moderate strategy......Page 136 6.5 Established strategy......Page 144 6.6 Retreating strategy......Page 151 6.7 Imploding strategy......Page 159 6.8 Internationalization strategies: financial indicators......Page 166 7.2 Why internationalization should increase profitability......Page 172 7.3 Why internationalization should improve shareholder return......Page 175 7.4 Testing the relationships......Page 177 8 The Competitive Future of Internationalization Strategies......Page 203 8.1 Summary of findings......Page 204 8.2 Which internationalization strategies are best positioned for future success?......Page 206 8.3 Coping with changing financial systems: is it a challenge or opportunity?......Page 213 8.4 European integration: one banking market at last?......Page 215 Notes......Page 218 References......Page 228 C......Page 234 E......Page 235 I......Page 236 N......Page 237 Z......Page 238 "This book explores the formulation, implementation and evaluation of internationalization strategies in banking. The international strategies of the world's leading banks in eight countries are examined between 1980 and 2004, strategic patterns are identified and the effects on profitability, stability and shareholder performance are analysed. The results are sobering. Increasing profitability and shareholder return through internationalization turns out to be extremely challenging. Only a few banks are able to turn international banking activities into a success. With the ongoing cross-border consolidation in the banking industry, this book is an important contribution to the internationalization debate and a must-read for bank management, regulators and shareholders."--Jacket