Publication:
Are International Banks Different?: Evidence on Bank Performance and Strategy

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dc.contributor.authorBertay, Ata Can
dc.contributor.authorDemirguc-Kunt, Asli
dc.contributor.authorHuizinga, Harry
dc.date.accessioned2017-12-21T20:57:48Z
dc.date.available2017-12-21T20:57:48Z
dc.date.issued2017-12
dc.description.abstractThis paper provides evidence on how bank performance and strategies vary with the degree of bank internationalization, using data for 113 countries over 2000-15. The paper investigates whether international banks headquartered in developing countries behave and perform differently from those headquartered in high-income countries. The results show that, compared with domestic banks, international banks have lower valuations and achieve lower returns on equity in general. This suggests that, on average, bank internationalization has progressed beyond the point where it is in the interest of bank shareholders, potentially because of corporate governance failures and too-big-to-fail subsidies that accrue to large and complex banks. In contrast, developing country international banks seem to have benefited from internationalization compared with their high-income counterparts. Furthermore, for international banks headquartered in developing countries, bank internationalization reduces the cyclicality of their domestic credit growth with respect to domestic gross domestic product growth, smoothing local downturns. In contrast, if the international bank is from a high-income country investing in a developing country, its lending is relatively procyclical, which can be destabilizing.en
dc.identifierhttp://documents.worldbank.org/curated/en/908851513693366704/Are-international-banks-different-evidence-on-bank-performance-and-strategy
dc.identifier.doi10.1596/1813-9450-8286
dc.identifier.urihttps://hdl.handle.net/10986/29078
dc.languageEnglish
dc.publisherWorld Bank, Washington, DC
dc.relation.ispartofseriesPolicy Research Working Paper;No. 8286
dc.rightsCC BY 3.0 IGO
dc.rights.holderWorld Bank
dc.rights.urihttp://creativecommons.org/licenses/by/3.0/igo
dc.subjectBANKING
dc.subjectINTERNATIONALIZATION
dc.subjectSOUTH-SOUTH BANKING
dc.subjectRISK-TAKING
dc.subjectCYCLICALITY
dc.titleAre International Banks Different?en
dc.title.subtitleEvidence on Bank Performance and Strategyen
dc.typeWorking Paperen
dc.typeDocument de travailfr
dc.typeDocumento de trabajoes
dspace.entity.typePublication
okr.crossref.titleAre International Banks Different? Evidence on Bank Performance and Strategy
okr.date.disclosure2017-12-19
okr.doctypePublications & Research
okr.doctypePublications & Research::Policy Research Working Paper
okr.docurlhttp://documents.worldbank.org/curated/en/908851513693366704/Are-international-banks-different-evidence-on-bank-performance-and-strategy
okr.guid908851513693366704
okr.identifier.doi10.1596/1813-9450-8286
okr.identifier.externaldocumentum090224b085465077_1_0
okr.identifier.internaldocumentum29285380
okr.identifier.reportWPS8286
okr.importedtrueen
okr.language.supporteden
okr.pdfurlhttp://documents.worldbank.org/curated/en/908851513693366704/pdf/WPS8286.pdfen
okr.statistics.combined3699
okr.statistics.dr908851513693366704
okr.statistics.drstats2954
okr.topicFinance and Financial Sector Development::Banks & Banking Reform
okr.topicFinance and Financial Sector Development::Finance and Development
okr.topicFinance and Financial Sector Development::International Financial Markets
okr.topicGovernance::Governance and the Financial Sector
okr.topicGovernance::Multinational & Corporate Governance
okr.topicPrivate Sector Development::Corporate Governance
okr.topicPrivate Sector Development::Emerging Markets
okr.unitFinance and Private Sector Development Team, Development Research Group
relation.isAuthorOfPublication234a20c0-893c-561a-8c90-6f5be5be5b9b
relation.isAuthorOfPublication.latestForDiscovery234a20c0-893c-561a-8c90-6f5be5be5b9b
relation.isSeriesOfPublication26e071dc-b0bf-409c-b982-df2970295c87
relation.isSeriesOfPublication.latestForDiscovery26e071dc-b0bf-409c-b982-df2970295c87
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