Distance and International Banking

Abstract

Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. For the US, a declining importance of distance was found. Several interpretations of these findings are discussed. Terms of use: Documents in EconStor may

Exporting financial institutions management via foreign direct investment mergers and acquisitions

“…The data suggest that banks in highly regulated markets are less likely to be acquired, and that geographic distance and cultural differences tend to deter cross-border M&As, although the exact sources of the diseconomies are often difficult to disentangle (e.g., Buch and DeLong, 2004). Similarly, Buch (2001Buch ( , 2003 finds that these kinds of structural factors act as barriers to cross-border lending and borrowing by banks. Another barrier may be preferences for domestically-owned institutions due to the 'concierge' services that they can provide in terms of knowledge of the local conditions and information about local nonfinancial suppliers and customers.…”

Migration and the retail banking industry: an examination of immigrants’ bank nationality choice in Germany

“…The differences between these countries will be accounted for by a number of control variables in our regression framework, which will be explained in more detail in Section 4. To evaluate our results, we cannot only draw on the positive evaluation of bank globalization by Kose et al (2006) but also try and determine whether or not there are further boundaries to bank globalization in foreign retail banking services, following Fecht and Gruener (2007) or Buch (2005) and, most importantly, Berger et al (2003). Since Berger et al's analysis strongly resembles our approach, it will be interesting to see whether or not retail customers also tend to choose host nation banks over home nation banks, regardless of cultural or economic differences between the respective countries.…”

“…Neglecting other micro-and macroeconomic factors, their model clearly develops boundaries to bank globalization. A potential second boundary is discussed by Buch (2005). She analyzes whether or not geographical distance between countries has any implications for the extent of cross-country bank lending.…”

International banking during the Global Financial Crisis: U.K. and U.S. perspectives

“…Note that other researchers (e.g. Moshirian et al, 2004) have highlighted the importance of matching international asset and liability positions to reduce foreign exchange and interest rate risk in the international balance sheet, although Buch (2005) showed that banks prefer to lend locally despite potential gains from diversification.…”