Trade Theories and International Banking

  • Aidan O’Connor

Abstract

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.

Keywords

Europe Income Marketing Expense Agglomeration 

Preview

Unable to display preview. Download preview PDF.

Unable to display preview. Download preview PDF.

Notes

  1. 1.
    Hindley, B. and Smith, A., Comparative Advantage in Trade in Services, World Economy, 7, 1984, p. 386.Google Scholar
  2. 3.
    Arndt, H., Comparative Advantage in Trade in Financial Services, Banca Nazionale del Lavoro, Quarterly Review, March, 1988, p. 73.Google Scholar
  3. 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
  4. 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
  5. 7.
    Jones, R. and Ruane, F., Options for Trade in Services, Oxford Economic Papers, 42, 1990, p. 673.Google Scholar
  6. 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
  7. 10.
    Gray, J. and Gray, H., The Multinational Bank: a Financial MNC? Journal of Banking and Finance, 5, 1981.Google Scholar
  8. 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
  9. 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
  10. 17.
    Bryant, R., International Financial Intermediation, Brookings Institution, Washington, 1987, p. 63.Google Scholar
  11. 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
  12. 19.
    Mutinelli, M. and Piscitello, L., Foreign Direct Investment in the Banking Sector: the case of Italian Banks in the 1990s, International Business Review, 10, 2001, pp. 668–669.CrossRefGoogle Scholar
  13. 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

Copyright information

© Aidan O’Connor 2005

Authors and Affiliations

  • Aidan O’Connor

There are no affiliations available

Personalised recommendations