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Are international banks different? Evidence on bank performance and strategy

Jun 25, 2019 | A. Bertay, A. Demirgüç-Kunt and H. Huizinga | Bank for International Settlements (BIS)

This paper examines how bank internationalisation might influence bank performance. Using bank-level information for 113 countries over the 2000-15 period, we consider how bank internationalisation is related to bank valuation, risk and return. As international banks from developing countries have recently expanded strongly, we also focus on whether these banks perform differently to international banks based in high-income countries. Finally, we study how internationalising banks may differ in terms of their business models and funding strategies, as well as how far their lending volume varies with the business cycle in their home country and in any foreign country where they have a subsidiary.