Spanish banks’ internationalisation strategy: characteristics and comparison
Series: Analytical Articles.
Author: Isabel Argimón.
Topics: Economic situation, Monetary policy, Spain, Financial analysis.
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Summary
Banks’ international strategy and the way in which they have expanded are explanatory
factors for the economic effects of their activity. Based on information from individual
institutions, the internationalisation strategies of banks based in Spain, the Netherlands
and the United States have been compared. In addition, in the Spanish case, whether
banks’ risk, efficiency, return and income source type differ according to the chosen
model of internationalisation has been tested. The results of this comparison point to
Spanish banks with subsidiaries and branches abroad having higher returns but also
higher costs than banks whose foreign business is mainly cross-border.