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Cross-border banking in Europe: An empirical investigation

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  • Josep García Blandón

Abstract

This paper investigates bilateral trade in banking services within the European Union. The attention has been addressed to two main issues. First, to test the bank's motivations for setting up the different forms of overseas offices, and secondly, to assess the importance of barriers to entry across national European banking systems. Empirical results confirm the existence of different motivations for establishing representative offices, branches and subsidiaries in foreign locations. In addition, evidence has been achieved about the importance of non-regulatory barriers that could make difficult the existence of a single European market for banking services.

Suggested Citation

  • Josep García Blandón, 2000. "Cross-border banking in Europe: An empirical investigation," Economics Working Papers 509, Department of Economics and Business, Universitat Pompeu Fabra.
    • Handle: RePEc:upf:upfgen:509
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    References listed on IDEAS

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    Cited by:

    1. Berger, Allen N. & Dai, Qinglei & Ongena, Steven & Smith, David C., 2003. "To what extent will the banking industry be globalized? A study of bank nationality and reach in 20 European nations," Journal of Banking & Finance, Elsevier, vol. 27(3), pages 383-415, March.
    2. Donald P. Morgan & Bertrand Rime & Philip E. Strahan, 2000. "Bank integration and business volatility," Staff Reports 129, Federal Reserve Bank of New York.
    3. Donald Morgan & Bertrand Rime & Philip Strahan, 2003. "Bank Integration and State Business Cycles," NBER Working Papers 9704, National Bureau of Economic Research, Inc.
    4. Raj Aggarwal & Brian M. Lucey & Cal Muckley, 2004. "Dynamics of Equity Market Integration in Europe: Evidence of Changes over time and with events," The Institute for International Integration Studies Discussion Paper Series iiisdp019, IIIS.

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    More about this item

    Keywords

    Cross-border banking; barriers to entry and form of representation;

    JEL classification:

    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages

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