“…In Notes: %FD it = percentage of not EEA banks' deposits on the overall market computed on the basis of the Formula (1); %FL it = percentage of not EEA banks' loans on the overall market computed on the basis of the Formula (2); HHI it = Herfindahl-Hirsman concentration index on the basis of the total assets of banks classified by Country computed on the basis of the Formula (3) Source: Orbis data processed by the authors Cross-border banking accordance with Buch et al (2011), international banks interested in going abroad are big enough to support fixed costs and, moreover, their efficiency is determined by their focus on off-balance-sheet operations yielding high net interest income (Generale and Gobbi, 1999). This is consistent with reductions in domestic banks in the host market upon arrival of foreign competitors (Claessens et al, 2001); moreover, contrary to Focarelli and Pozzolo (2001), who analyze a different time period, banks going abroad want to increase their return on assets; this can be pursued by attempting to enter more efficient banking systems (Niepmann, 2018), while country ROA is not significant. Notes: The table presents results of a probit regression model with fixed effects (a) and a GLM regression model (b) that is considering as dependent variable a dummy that assume value 1 if the banking group has a foreign branch in the country j at time t and zero otherwise.…”