Foreign bank entry in South East Asia
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In: International Review of Financial Analysis, Vol. 30, No. December, 01.12.2013, p. 26-35.
Research output: Contribution to journal › Article › peer-review
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TY - JOUR
T1 - Foreign bank entry in South East Asia
AU - Molyneux, P.
AU - Nguyen, L.H.
AU - Xie, R.
PY - 2013/12/1
Y1 - 2013/12/1
N2 - This paper examines the determinants of foreign bank entry in South East Asian countries after significant policy changes following the regional financial crisis in 1997/1998. The results show that manufacturing FDI and bilateral trade exert weak impacts on the decision of entry by foreign banks, providing little evidence for the argument that banks follow their home customers abroad. In contrast, local profit opportunities appear to be the prominent factor attracting foreign bank penetration in South East Asia. The results are robust to different modelling techniques.
AB - This paper examines the determinants of foreign bank entry in South East Asian countries after significant policy changes following the regional financial crisis in 1997/1998. The results show that manufacturing FDI and bilateral trade exert weak impacts on the decision of entry by foreign banks, providing little evidence for the argument that banks follow their home customers abroad. In contrast, local profit opportunities appear to be the prominent factor attracting foreign bank penetration in South East Asia. The results are robust to different modelling techniques.
U2 - 10.1016/j.irfa.2013.05.004
DO - 10.1016/j.irfa.2013.05.004
M3 - Article
VL - 30
SP - 26
EP - 35
JO - International Review of Financial Analysis
JF - International Review of Financial Analysis
SN - 1057-5219
IS - December
ER -