search query: @indexterm Australia / total: 778
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| Author: | Williams, B. |
| Title: | Factors affecting the performance of foreign-owned banks in Australia: A cross-sectional study |
| Journal: | Journal of Banking and Finance
1998 : FEB, VOL. 22:2, p. 197-219 |
| Index terms: | BANKING MODELS AUSTRALIA |
| Language: | eng |
| Abstract: | The study extends the existing literature of international banking by constructing a model of foreign intermediaries in Australia. An unresolved question is establishing the factors that result in banking across borders. While a variety of theories attempt to explain international banking, empirical tests are sparse (Mahajan, A., Rangan, N., Zardkoohi, A., 1996. Journal of Banking and Finance vol. 20, p. 283-306). This study considers if the results to date apply in non-US settings. Foreign bank size was found to be a positive function of bank licence, parent size and time in Australia, and a negative function of Australian net interest margins and fees. The negative sign on net interest margins and fees is consistent with De Young, R., Nolle, D., 1996. Journal of Money, Credit and Banking vol. 28, p. 622-636. Foreign bank profits were a positive function of Australian net interest margins and fees. There was limited evidence of defensive expansion. This paper concludes that foreign bank size is explained well by the existing theories of international banking, but a wider model is appropriate for foreign bank profits. |
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