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Inward entry of Japanese banks into the Russian market

Author

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  • Victor Gorshkov

    (PhD student, Graduate School of Economics, Kyoto University)

Abstract

The paper represents a case study of Japanese banks operating on the Russian banking market. We particularly analyze motivation, organizational representation, entry modes and strategies of Japanese banks. We argue that in case of Japanese banks both the specificity of the home country (Japan) (relationship banking, main bank system) and host country (Russia) indeed plays an important role in expanding their businesses abroad. The shares of Japanese banks in total banking assets, deposits and lending rate of the Russian banking sector remain low, and in general Japanese banks in Russia might be regarded as “followers†of the Japanese business in Russia. Meanwhile, we also provide evidence that PULL factors are the driving forces providing reasoning for the exceptions from this rule in the behavioral patterns of Japanese banks. The paper summarizes history of foreign expansion of Japanese banks into the Russian market and aims to conduct analysis under the framework of the multinational banking theory.

Suggested Citation

  • Victor Gorshkov, 2013. "Inward entry of Japanese banks into the Russian market," KIER Working Papers 864, Kyoto University, Institute of Economic Research.
    • Handle: RePEc:kyo:wpaper:864
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    File URL: http://www.kier.kyoto-u.ac.jp/DP/DP864.pdf
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    References listed on IDEAS

    as
    1. Marc Ruhr & Michael Ryan, 2005. "“Following” or “attracting” the customer? Japanese Banking FDI in Europe," Atlantic Economic Journal, Springer;International Atlantic Economic Society, vol. 33(4), pages 405-422, December.
    2. Yoshiro Miwa & J. Mark Ramseyer, 2005. "Does Relationship Banking Matter? The Myth of the Japanese Main Bank," Journal of Empirical Legal Studies, John Wiley & Sons, vol. 2(2), pages 261-302, July.
    3. Maximilian J.B. Hall, 2009. "Japan: the banks are back! Or are they?," Journal of Financial Regulation and Compliance, Emerald Group Publishing Limited, vol. 17(1), pages 16-28, February.
    4. Yamori, Nobuyoshi, 1998. "A note on the location choice of multinational banks: The case of Japanese financial institutions," Journal of Banking & Finance, Elsevier, vol. 22(1), pages 109-120, January.
    5. William P Wan & Daphne W Yiu & Robert E Hoskisson & Heechun Kim, 2008. "The performance implications of relationship banking during macroeconomic expansion and contraction: a study of Japanese banks' social relationships and overseas expansion," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 39(3), pages 406-427, April.
    6. Yamori, Nobuyoshi, 1997. "Do Japanese banks lead or follow international business? An empirical investigation," Journal of International Financial Markets, Institutions and Money, Elsevier, vol. 7(4), pages 369-382, December.
    7. Lihong Qian & Andrew Delios, 2008. "Internalization and experience: Japanese banks’ international expansion, 1980–1998," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 39(2), pages 231-248, March.
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    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    foreign banking; Japanese banks; motivation; entry modes; strategie;
    All these keywords.

    JEL classification:

    • F21 - International Economics - - International Factor Movements and International Business - - - International Investment; Long-Term Capital Movements
    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
    • P31 - Political Economy and Comparative Economic Systems - - Socialist Institutions and Their Transitions - - - Socialist Enterprises and Their Transitions

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