Multinational Banks and Foreign Expansion Decisions
by Cansu Eray (Author)

About the Author
Cansu Eray was born in Ankara, Turkey. She completed B.Sc. Economics at Hacettepe University (Ankara, Turkey) with High Honour degree as a third of the department while studying a minor degree in B.Sc. Political Sciences and Public Administration at the same time. Then, she awarded by merit-based scholarship for M.Sc. International Management at Trinity College Dublin (Dublin, Ireland). She graduated with distinction from Trinity College Dublin after attending International Residency Program on Marketing and Management at Fudan University (Shanghai, China).

From finance to information technology, the author has a wide range of experience in compliance in real sector. In addition to many professional certifications, the author is a “Certified Compliance Officer” by ALCO (Association of Luxembourg Compliance Officers) and a “Certified Financial Crime Prevention Professional” by University College Dublin. Her “How to Build a Culture of Compliance” article was published in June 2018 volume of Compliance & Ethics Professional magazine.

After working at Isbank AG (Berlin, Germany) by European Union Scholarship, she began to work as an Internal Control and Compliance
Specialist at Akbank (Istanbul, Turkey). Currently, she is working at Apple (Cork, Ireland) as a Legal Specialist in Privacy and Law Enforcement Compliance team while continuing her academic career as a freelance writer.

About this Book
This book presents a systematic review of the literature on the foreign expansion decisions of multinational banks (MNBs). With today's increasing level of globalization, many banks have expanded their activities internationally to take advantage of new opportunities in different markets. As each extension strategy brings distinctive benefits and challenges, finding an optimal approach to internationalization plays a crucial role in maximizing the advantages while decreasing the drawbacks under changing conditions. After screening 141 papers, 28 articles from leading international research journals were selected according to defined criteria in order to provide a synthesized framework connecting MNBs’ decisions to enter foreign markets with the reasons and consequences.

The book argues that the MNBs’ main motivations for foreign expansion are related to location and ownership factors. Based on the priorities of these motives, MNBs can choose cross-border lending, greenfield investment or acquisition as an entry mode. Since each has its own benefits and challenges, the chosen strategy has further implications for both the profitability of MNBs and the economic conditions of the host country regarding the competition level, lending pattern to small and medium enterprises (SMEs), market interest rates and financial stability.

After establishing a link between the main drivers of foreign expansion, the entry mode choices, and the impacts of foreign bank presence in the host country, the book offers managers of MNBs insights into the further implications. Highlighting the gaps in literature, it also appeals to researchers looking for future areas of study.

Brief Contents
1 Introduction to Foreign Expansion Decisions of Multinational Banks 1
    Methodology 5
        Identification of Relevant Sources 6
        Selection of Relevant Resources 6
        Inclusion and Exclusion Criteria 7
        Screening and Eligibility 8
        Categorization of Selected Studies 8
    References 10
2 Main Motivations of MNBS to Expand Abroad 13
    Location-Specific Factors 13
        Home and Host Country Integration 13
        Market Opportunities and Characteristics of the Host Country 15
        Host Country Regulations 17
    Ownership-Specific Factors 18
        Size 18
        Efficiency and Performance 19
        Home Country Regulations 20
    Executive Summary 21
    References 23
3 Enrty Decisions of Multinational Banks (MNBs) 25
    Entry Mode Choices 26
        Cross-Border Lending 26
        Greenfield Investment 27
        Acquisition 29
    The Pattern of Entry Mode 30
    Effects of Senior Managers on Entry Decisions 31
    Executive Summary 32
    References 34
4 Impacts of Foreign Entry to Host Country and Further Implications for MNBs 37
    Competition 37
    Lending to Small-Medium Enterprises (SMEs) 40
    Market Interest Rates 41
    Financial Stability 42
    Preferences of Policymakers 44
    Executive Summary 45
    References 48
5 An Overview for MNBs Foreign Expansion Strategies 51
    Managerial Implications 62
    Direction for Further Studies 67
    References 68
Appendix 71
Organizational Form Decisions of MNB 91
Index 97

Pages: 98 pages
Publisher: Palgrave Pivot; 1st ed. 2020 edition (February 3, 2020)
Language: English
ASIN: B084H88XHK