Trade Theories and International Banking
International banking is comprised of cross-border banking services and foreign direct investment by banks. The choice of strategy determines the range of services that a bank may offer and depends on the resources of the bank. Banks may also provide cross-border banking services through foreign offices to its home country and to third countries. These strategies are not substitutes as much of what is considered cross-border banking requires a foreign presence to originate the business and to deliver the service. Another element to trade in banking services involves the temporary presence of bank personnel in a foreign country to transact business, whether through a permanent foreign office in that country or not.
KeywordsEurope Income Marketing Expense Agglomeration
Unable to display preview. Download preview PDF.
- 1.Hindley, B. and Smith, A., Comparative Advantage in Trade in Services, World Economy, 7, 1984, p. 386.Google Scholar
- 3.Arndt, H., Comparative Advantage in Trade in Financial Services, Banca Nazionale del Lavoro, Quarterly Review, March, 1988, p. 73.Google Scholar
- 4.Hanweck, G. and Shull, B., The Bank Merger Movement: Efficiency, Stability and Competitive Policy Concerns, Antitrust Bulletin, Volume 44, 1999, pp. 261–262.Google Scholar
- 6.Feketekuty, G., in Walter, I. and Murray, T. (eds), Handbook of International Business, Wiley, New York, 1988, p. 23.8 and pp. 23. 26.Google Scholar
- 7.Jones, R. and Ruane, F., Options for Trade in Services, Oxford Economic Papers, 42, 1990, p. 673.Google Scholar
- 9.Aliber, R., Towards a Theory of International Banking, Federal Reserve Bank of San Francisco, Spring 1976, p. 5 and Aliber, 1984, op. cit., p. 661.Google Scholar
- 10.Gray, J. and Gray, H., The Multinational Bank: a Financial MNC? Journal of Banking and Finance, 5, 1981.Google Scholar
- 14.Tori, C. and Tori, S., Exchange Market Pressure, Trade, Sovereign Credit Ratings and United States ’ Exports of Banking Services Atlantic Economic Journal, Volume 29, Number 1, 2001.Google Scholar
- 15.Li, D., Moshirian, F., and Sim, A., The Determinants of Intra-industry Trade in Insurance Services, Journal of Risk and Insurance, June, 2003.Google Scholar
- 17.Bryant, R., International Financial Intermediation, Brookings Institution, Washington, 1987, p. 63.Google Scholar
- 18.Berger, A., Dai, Q., Ongena, S., and Smith D., To What Extent will the Banking Industry be Globalised? A Study of Bank Nationality and Reach in 20 European Nations, Journal of Banking and Finance, 27, Issues 3, 2003, pp. 389–394.Google Scholar
- 20.Gentle, C., The Titans Take Hold, How Offshoring has Changed the Competitive Dynamic for Global Financial Services Institutions, Global Financial Services Industry Group, Deloitte Touche Tohmatsu, 2004, p. 3.Google Scholar