IDEAS home Printed from https://ideas.repec.org/a/mcb/jmoncb/v28y1996i4p622-36.html
   My bibliography  Save this article

Foreign-Owned Banks in the United States: Earning Market Share or Buying It?

Author

Listed:
  • DeYoung, Robert
  • Nolle, Daniel E

Abstract

Foreign-owned U.S. banks have been chronically unprofitable for more than a decade. The authors employ a profit efficiency model introduced by Allen N. Berger, Diana Hancock, and David B. Humphrey (1993), modified to be less sensitive to variations in asset size, to estimate the relative profit efficiency of 62 foreign-owned and 240 U.S.-owned banks between 1985 and 1990. Their results indicate that foreign-owned banks were significantly less profit efficient than were U.S.-owned banks primarily due to foreign banks reliance on expensive purchased funds. For foreign-owned banks, the results are consistent with a strategy of sacrificing profits in exchange for fast growth and increased market share during the 1980s. Copyright 1996 by Ohio State University Press.

Suggested Citation

  • DeYoung, Robert & Nolle, Daniel E, 1996. "Foreign-Owned Banks in the United States: Earning Market Share or Buying It?," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 28(4), pages 622-636, November.
    • Handle: RePEc:mcb:jmoncb:v:28:y:1996:i:4:p:622-36
    as

    Download full text from publisher

    File URL: http://links.jstor.org/sici?sici=0022-2879%28199611%2928%3A4%3C622%3AFBITUS%3E2.0.CO%3B2-Q&origin=bc
    File Function: full text
    Download Restriction: Access to full text is restricted to JSTOR subscribers. See http://www.jstor.org for details.
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:mcb:jmoncb:v:28:y:1996:i:4:p:622-36. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley-Blackwell Digital Licensing or Christopher F. Baum (email available below). General contact details of provider: http://www.blackwellpublishing.com/journal.asp?ref=0022-2879 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.