Keywords: Bank, globalization, Europe, mergers
Abstract: We model two dimensions of bank globalization -- bank nationality (a
bank from the firm's host nation, its home nation, or a third nation)
and bank reach (a global, regional, or local bank) using a two-stage
nested multinomial logit model. Our data set includes over 2,000
foreign affiliates of multinational corporations operating in 20
European nations. We find that these firms frequently use host nation
banks for cash management services, and that bank reach may be
strongly influenced by this choice of bank nationality. Our results
suggest limits to the degree of future bank globalization.
Full paper (1417 KB PDF)
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Last update: May 30, 2002