An Examination of Cross-Border Strategies in Banking

  • Barry Howcroft
  • Rehan ul-Haq
  • Chris Carr
Part of the Palgrave Macmillan Studies in Banking and Financial Institutions book series (SBFI)


The emergence of countries such as China and India and the general trend towards economic opening has led to announcements of global strategic intent by virtually all of the major companies in recent years (Grosse, 2005). However, a primary consideration in focusing specifically on the cross-border activities of banks emanated from the sheer size of their international activities. For example, a cursory examination of foreign assets as a percentage of total assets of the 30 largest banks reveals that they increased from 35 per cent in 1980 to over 38 per cent by 2003 (De Nicolo et al., 2004). Moreover, the absolute size of the foreign assets of these same banks increased 11-fold from $650 billion in 1990 to over $7,571 billion in 2000 (Slager, 2005). Prior to the credit crunch, the global banking sector was estimated to have had a market value in excess of $65,700 billion in 2005 (Datamonitor, 2006).


Large Bank Entry Mode Foreign Asset Geographic Scope International Business Study 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.


Unable to display preview. Download preview PDF.

Unable to display preview. Download preview PDF.


  1. Altman, E., Brady, B., Resti, A. and Sironi, A. (2005) ‘The Link between Default and Recovery Rates; Implications for Credit Risk Models and Procyclicality’, Journal of Business, 78, 2203–28.CrossRefGoogle Scholar
  2. Alvarez-Gil, M.J., Cardone-Riportella, C., Lado-Couste, N. and Samartin- Saenz, M. (2003) ‘Financial Service Firms’ Entry-Mode Choice and Cultural Diversity: Spanish Companies in Latin America’, International Journal of Bank Marketing, 21(3), 109–21.CrossRefGoogle Scholar
  3. Amel, D., Barnes, C., Pannetta, F. and Salleo, C. (2003) ‘Consolidation and Efficiency in the Financial Sector: A Review of the International Evidence’, CEIS Tor Vergata Research Paper Series, 7(20) (June).Google Scholar
  4. Anderson, O. (1993) ‘On the Internationalisation Process of Firms: A Critical Analysis’, Journal of International Business Studies, 24(2), 209–31.CrossRefGoogle Scholar
  5. Atamer, T., Calori, R., Gustavsson, P. and Menguzzato-Boulard, M. (2000) ‘Internationalisation Strategies’, in Calori, R., Atamer, T. and Nunes, P. (eds), The Dynamics of International Competition — From Practice to Theory, Strategy Series (London: Sage), pp. 162–206.CrossRefGoogle Scholar
  6. The Banker (2004) The Top 100 Banks (London: Financial Times Business Limited).Google Scholar
  7. Barros, P.P., Berglof, E., Fulghierri, J., Gual, J., Mayer, C. and Vives, X. (2005) Integration of European Banks: The Way Forward (London: Centre for Economic Policy Research).Google Scholar
  8. Bartlett, C.A. and Ghoshal, S. (1989) Managing Across Borders: The Transnational Solution (Boston, MA: Harvard Business School Press).Google Scholar
  9. Basel (2004) Basel II: International Convergence of Capital Measurement and Capital Standards: a Review Framework, Basel Committee Publications, No. 107, on banking supervision.Google Scholar
  10. Bauer, J.N. (1994) ‘The Emergence of Global Networks in Telecommunications: Transcending National Regulation and Market Constraints’, Journal of Economic Issues, 28(2), 391–402.Google Scholar
  11. Beitel, P.P. and Schiereck, D. (2001) Value Creation at the Ongoing Consolidation of the European Banking Market, Working Paper 05/01, Institute for Mergers and Acquisitions, University of Witten/Herdecke, September.Google Scholar
  12. Berger, A.N., DeYoung, R. and Udell, G.F. (2001) ‘Efficiency Barriers to the Consolidation of the European Financial Services Industry’, European Management Journal, 7(1), 117–30.CrossRefGoogle Scholar
  13. Berger, A.N., Dai, Q., Ongena, S. and Smith, D. (2003) ‘To What Extent Will the Banking System become Globalised? A Study of Bank Nationality and Reach in Twenty European Countries’, Journal of Banking and Finance, 27(March), 383–415.CrossRefGoogle Scholar
  14. Bikker, J.A. and Metzemakers, P.A.J. (2005) ‘Bank Provisioning Behaviour and Procyclicality’, Journal of International Financial Markets, Institutions and Money 15, 141–57.CrossRefGoogle Scholar
  15. Boot, A.W. A. and Thakor, A.V. (1996) ‘Banking Structure and Financial Innovation’, in Saunders, A. and Walter, I. (eds), Universal Banking: Financial System Design Reconsidered (Chicago: Irwin Professional Publishing), pp. 420–30.Google Scholar
  16. Bryan, L., Fraser, J., Oppenheim, J. and Rall, W. (1999), Race for the World: Strategies to Build a Great Global Firm (Boston, MA: Harvard Business School Press).Google Scholar
  17. Buch, C.M. and Heinrich, R.P. (2002) Financial Integration in Europe and Banking Sector Performance, Kiel Institute of World Economics, Mimeograph.Google Scholar
  18. Buch, C.M. and Lipponer, A. (2007) ‘FDI Versus Exports: Evidence from German Banks’, Journal of Banking and Finance, 31(3), 805–26.CrossRefGoogle Scholar
  19. Buch, C.M. and De Long, G. (2004) ‘Cross-Border Bank Mergers: What Lures the rare Animal’, Journal of Banking and Finance, 28, 2077–102.CrossRefGoogle Scholar
  20. Buckley, PJ. and Casson, M.C. (1976) The Future of the Multinational Enterprise (London: Macmillan).Google Scholar
  21. Caves, R.E. (1982) Multinational Enterprise and the Market (Cambridge: Cambridge University Press).Google Scholar
  22. Chang, H. (2004) Globalisation, Economic Development and the Role of the State (London: Zed Books Ltd).Google Scholar
  23. Claessens, S., Demirguc-Kunt, A. and Huizinga, H. (2000) ‘The Role of Foreign Banks in Domestic Banking Systems’, in Claessens, S. and Jansen, M. (eds), The Internationalisation of Financial Services: Issues and Lessons for Developing Countries (Boston, MA: Kluwer Academic).Google Scholar
  24. Clarke, G., Cull, R., Soledad, M., Peria, M. and Sanchez, S.M. (2003), ‘Foreign Bank Entry: Experience, Implications for Developing Economies, and Agenda for Further Research’, The World Bank Research Observer, 18(1), Spring, 25–59.CrossRefGoogle Scholar
  25. Coffey, A. and Atkinson, P. (1996) Making Sense of Qualitative Data; Complementary Research Strategies (Thousand Oaks, CA: Sage).Google Scholar
  26. Dages, G.B., Goldberg, L.B. and Kinney, D. (2000) ‘Foreign and Domestic Bank Participation in Emerging Markets: Lessons from Mexico and Argentina’, Federal Reserve Bank of New York Economic Policy Review, 6(1), 17–36.Google Scholar
  27. Datamonitor (2006), Global Banks Industry Profile (London: Datamonitor), 0199–2013.Google Scholar
  28. De Nicolo, G., Bartholomew, P., Zaman, J. and Zephirin, M. (2004) Bank Consolidation, Internationalisation and Conglomeration: Trends and Implications for Financial Risk, IMF Working Paper No. WP/03/158 (Washington, DC: International Monetary Fund).Google Scholar
  29. Denrell, J., Fang, C. and Winther, S.G. (2003) ‘The Economics of Strategic Opportunity’, Strategic Management Journal, 24(10), 977–90.CrossRefGoogle Scholar
  30. Dey, I. (1993) Qualitative Data Analysis (London: Routledge).CrossRefGoogle Scholar
  31. Di Maggio, PJ and Powell, W.W. (1983) ‘The Iron Cage Revisited: Institutional Isomorphism and Collective Rationality in Organisational Fields’, American Sociological Review, 48, 147–60.CrossRefGoogle Scholar
  32. Doz, Y. (1980) ‘Strategic management in Multinational Companies’, Sloan Management Review, 21(4), 27–46.Google Scholar
  33. Doz, Y. (1996) ‘The Evolution of Co-operation in Strategic Alliances: Initial Conditions or Learning Processes?’, Strategic Management Review, 17(Special Issue), 55–83.Google Scholar
  34. Dunning, J.H. (1997) Alliance Capitalism and Global Business (London: Routledge).CrossRefGoogle Scholar
  35. Dunning, J.H. (2001) ‘The Eclectic (OLI) Paradigm of International Production: Past Present and Future’, International Journal of the Economics of Business, 8(2), 173–90.CrossRefGoogle Scholar
  36. Easterby-Smith, M., Thorpe, R. and Lowe, A. (2003) Management Research: An Introduction (London: Sage Publications).Google Scholar
  37. Erramilli, M.K. (1991) ‘The Experience Factor in Foreign Market Entry Behaviour of Service Firms’, Journal of International Business Studies, 22(3), 479–502.CrossRefGoogle Scholar
  38. Fayerweather, J. (1969) International Business Management (New York: McGraw Hill).Google Scholar
  39. Focarelli, D. and Pozzolo, A.F. (2001) ‘The Patterns of Cross-border Mergers and Shareholdings in OECD Countries’, Journal of Banking and Finance, 25, 2305–37.CrossRefGoogle Scholar
  40. Focarelli, D. and Pozzolo, A.F. (2005) ‘Where Do Banks Expand Abroad? An Empirical Analysis’, The Journal of Business, 78(6), 2435–64.CrossRefGoogle Scholar
  41. Friedman, M. (2007) ‘The Social Responsibility of Business to Increase its Profits’, in Zimmerli, W.C., Holzinger, M. and Richter, K. (eds), Corporate Ethics and Corporate Governance (Berlin: Springer), pp. 173–8.CrossRefGoogle Scholar
  42. FSA (2009) The Turner Review: A Regulatory Response to the Global Banking Crisis (London: Financial Services Authority).Google Scholar
  43. Gardener, E.P.M., Howcroft, J. and Williams, J. (1999) ‘The New Retail Banking Revolution’, The Service Industries Journal, 19(2), 83–100.CrossRefGoogle Scholar
  44. Ghauri, P.N. and Gronhaug, K. (2005) Research Methods in Business Studies: A Practical Guide (Harlow: FT/Prentice Hall).Google Scholar
  45. Goddard, J., Molyneux, P., Wilson, J.O.S. and Tavakoli, M. (2007) ‘European Banking: An Overview’, Journal of Banking and Finance, 31(7), 1911–35.CrossRefGoogle Scholar
  46. Grosse, R. (2004) The Future of Global Financial Services (Oxford: Blackwell).Google Scholar
  47. Grosse, R. (2005) ‘Are the Largest Financial Institutions Really Global?’, Management International Review, Special Issue (45), 129–44.Google Scholar
  48. Grosse, R. and Goldberg, L.G. (1991) ‘Foreign Bank Activity in the United States: An Analysis by Country of Origin’, Journal of Banking and Finance, 15(6), 1092–112.CrossRefGoogle Scholar
  49. Hall, M.J.B. (1993) Handbook of Banking Regulation and Supervision in the United Kingdom (London: Woodhead-Faulkner).Google Scholar
  50. Hamalainen, P., Hall, M. and Howcroft, B. (2003) ‘Market Discipline: A Theoretical Framework for Regulating Policy Development’, in Kaufman, G. (ed.), Market Deregulation in Banking: Theory and Evidence, Research in Financial Services: Private and Public Policy (Oxford: Elsevier), pp. 57–97.Google Scholar
  51. Hamalainen, P., Pop, A., Hall, M.J.B. and Howcroft, B. (2008) ‘Did The Market Signal Impending Problems at Northern Rock? An Analysis of Four Financial Instruments’, Loughborough University, Department of Economics, Discussion Paper Series, No. 8.Google Scholar
  52. Hannan, M.T. and Freeman, J.H. (1984) ‘Structural Inertia and Organisational Change’, American Sociological Review, 49, 149–64.CrossRefGoogle Scholar
  53. ul-Haq, R. and Howcroft, J.B. (2007) ‘An Examination of Strategic Alliances and the Origins of International Banking in Europe’, International Journal of Service Industry Management, 18(2), 120–39.CrossRefGoogle Scholar
  54. Hauswald, R. and Marquez, R. (2006) ‘Competition and Strategic information Acquisition in Credit Markets’, Review of Financial Studies, 19(3), 967–1000.CrossRefGoogle Scholar
  55. Helpman, E., Melitz, M.J. and Yeaple, S.R. (2004) ‘Export Versus FDI’, American Economic Review, 94, 300–16.CrossRefGoogle Scholar
  56. Johanson, J. and Vahlne, J.E. (1977) ‘The Internationalisation Process of the Firm-A Model of Knowledge Development and Increasing Foreign Market Commitments’, Journal of International Business Studies, 8(1), 23–32.CrossRefGoogle Scholar
  57. Karimi, J., Yash, Y.P. and Somers, T.M. (1996) ‘Impact of Competitive Strategy and Information Technology Maturity on Firm’s Strategic Response to Globalisation’, Journal of Management Information Systems, 12(4), 55–88.Google Scholar
  58. King, N. (2004) ‘Using Templates in Thematic Analysis of Text’, in Cassell, C. and Symon, G. (eds), Essential Guide to Qualitative Methods in Organisational Research (London: Sage), pp. 256–70.CrossRefGoogle Scholar
  59. Kogut, B. (1985a) ‘Designing Global Strategies: Comparative and competitive Value-added Chains’, Sloan Management Review, Summer, 15–28.Google Scholar
  60. Kogut, B. (1985b) ‘Designing Global Strategies: Profiting from Operational Flexibility’, Sloan Management Review, Fall, 27–38.Google Scholar
  61. Kwok, C.C.Y. and Tadesse, S. (2006) ‘National Culture and Financial Systems’, Journal of International Business Systems, 37, 227–47.CrossRefGoogle Scholar
  62. Lawrence, P.R. and Lorsch, J.W. (1967) Organisation and Environment (Boston, MA: Harvard University Press).Google Scholar
  63. Lawson, T. (1997) Economics & Reality (London: Routledge).CrossRefGoogle Scholar
  64. Leknes, H.N. and Carr, C. (2004) ‘Globalisation, International Configurations and Strategic Implications: The Case of Retailing’, Long Range Planning, 37(1), 29–49.CrossRefGoogle Scholar
  65. Lewis, M. (2003) ‘Globalisation and Corporate Governance’, in Shanahan, M. and Treuren, G. (eds), Globalisation: Australian Regional Perspectives (Adelaide, South Australia: Wakefield Press), pp. 66–94.Google Scholar
  66. Lumpkin, G.T. and Dess, G.G. (1996) ‘Classifying the Entrepreneurial Construct and Linking it to Performance’, Academy of Management Review, 21(1), 135–72.Google Scholar
  67. Luo, Y. (1999) ‘Time-Based Experience and International Expansion: The Case of an Emerging Economy’, Journal of Management Studies, 36(4), 504–34.CrossRefGoogle Scholar
  68. Markusen, J.R. (2002) Multinational Firms and the Theory of International Trade (Cambridge, MA: MIT Press).Google Scholar
  69. Miles, N.B. and Huberman, A.M. (1984) Qualitative Data Analysis: A Sourcebook of New Methods (London: Sage).Google Scholar
  70. Miles, N.B. and Huberman, A.M. (1994) Qualitative Data Analysis: An Expanded Sourcebook (London: Sage).Google Scholar
  71. Miller, G.A. (1986) ‘Dictionaries in the Mind’, Language and Cognitive Processes, 1(1), 171–85.CrossRefGoogle Scholar
  72. Morse, J. (1994) ‘Emerging from the Data: Cognitive Process of Analysis in Qualitative Research’, in Janice Morse (ed.), Critical Issues in Qualitative Research Methods (Thousand Oaks, CA: Sage), pp. 23–41.Google Scholar
  73. Nellis, J.G., McCaffery, K.M. and Hutchinson, R.W. (2000) ‘Strategic Challenges for the European Banking Industry in the New Millennium’, International Journal of Bank Marketing, 18(2), 53–64.CrossRefGoogle Scholar
  74. Perry, M. and Bodkin, C. (2000) ‘Content Analysis of 100 Companies Web Sites’, Corporate Communications: An International Journal, 6(2), 87–97.CrossRefGoogle Scholar
  75. Porter, M.E. (1986) ‘Competition in Global Industries: A Conceptual Framework’, in Porter, M.E. (ed.), Competition in Global Industries (Boston, MA: Harvard Business School Press), pp. 15–60.Google Scholar
  76. Ramachandran, J., Mukherji, S. and Sud, M. (2006) ‘Strategic Entrepreneurship in a Globalising Economy: Evidence from Emerging Economies’, IIMB Management Review, 18(3), 291–302.Google Scholar
  77. Roberts, R. and Arnander, C. (2001) Take Your Partners (Houndmills: Palgrave Macmillan).CrossRefGoogle Scholar
  78. Rugman, A.M. and Verbeke, A. (1998) ‘Multinational Enterprises and Public Policy’, Journal of International Business Studies, 29(1), 115–36.CrossRefGoogle Scholar
  79. Rugman, A.M. and Verbeke, A. (2004) ‘A Perspective on Regional and Global Strategies of Multinational Enterprises’, Journal of International Business Studies, 35, 3–18.CrossRefGoogle Scholar
  80. Sapienza, H.J., Autio, E., Geage, G. and Zahara, S.A. (2006) ‘A Capabilities Perspective on the Effects of Early Internationalisation on Firm Survival and Growth’, Academy of Management Review, 31(4), 914–33.CrossRefGoogle Scholar
  81. Saunders, M., Lewis, P. and Thornhill, A. (2007) Research Methods for Business Students, 4th edn (Harlow: Pearson Education).Google Scholar
  82. Slager, A. (2005) ‘Internationalisation of Banks: Strategic Patterns and Performance’, SUERF (Vienna: The European Money and Finance Forum).Google Scholar
  83. Strauss, A. and Corbin, J. (1998) Basics of Qualitative Research: Techniques and Procedures for Developing Grounded Theory, 2nd edn (Thousand Oaks, CA: Sage).Google Scholar
  84. Tesch, R. (1990) Qualitative Research: Analysis Types and Software Tools (New York: Flamer).Google Scholar
  85. Tschoegl, A.E. (1983) ‘Size, Growth and Transnationality among the World’s Largest Banks’, Journal of Business, 56(2), 187–201.CrossRefGoogle Scholar
  86. Vander Vennet, R. (1996) ‘The Effects of Mergers and Acquisitions on the Efficiency and Profitability of EC Credit Institutions’, Journal of Banking and Finance, 20(November), 1531–58.CrossRefGoogle Scholar
  87. Weiss, L. (2005) ‘Global Governance, National Strategies: How Industrialised States Make Room to Move under the WTO’, Review of International Political Economy, 12(5), 723–49.CrossRefGoogle Scholar
  88. Westney, E.D. (2006) ‘The Regional Multinationals: MNEs and “Global” Strategic Management’, Journal of International Business Management, 37(3), 445–9.CrossRefGoogle Scholar
  89. Williams, B. (1998) ‘Factors Affecting the Performance of foreign-owned Banks in Australia: A Cross-Sectional Study’, Journal of Banking and Finance, 22(2), 197–219.CrossRefGoogle Scholar
  90. Yang, Y.S., Leone, R.P. and Alden, D.L. (1992) ‘A Market Expansion Ability Approach to Identify Potential Exporters’, Journal of Marketing, 56(1), 84–96.CrossRefGoogle Scholar
  91. Yin, R.K. (2003) Case Study Research: Design and Methods, 3rd edn (Thousand Oaks, CA: Sage).Google Scholar

Copyright information

© Barry Howcroft, Rehan ul-Haq and Chris Carr 2011

Authors and Affiliations

  • Barry Howcroft
  • Rehan ul-Haq
  • Chris Carr

There are no affiliations available

Personalised recommendations