Efficiency of multinational banks: Impacts of geographic and product loci

Detalhes bibliográficos
Autor(a) principal: Yildirim, C.
Data de Publicação: 2023
Outros Autores: Kasman, A., Gulamhussen, M. A.
Tipo de documento: Artigo
Idioma: eng
Título da fonte: Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos)
Texto Completo: http://hdl.handle.net/10071/29180
Resumo: This paper explores geographic diversification strategies’ impact on multinational banks’ operational performance within the context of research on globalization and regionalization. We employ a sample of the 49 largest banks from 16 European countries from 2011 to 2018 and proxy operational performance by technical efficiency. We find the impact of geographic diversification on operational performance depends on the locus of geographic diversification—home-regional vs. inter-regional—and the interplay between geographic diversification and banks’ functional focus. More specifically, home-regional diversification together with a concentration on non-interest income-generating activities, including fee and commission and trading income, worsens performance, and diversification across regions alongside a focus on non-interest income-generating activities improves performance. Distinct product characteristics’ ability to facilitate different regional dispersions has important managerial implications for enhancing the success of geographic diversification strategies, a central but unresolved issue in global banking.
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spelling Efficiency of multinational banks: Impacts of geographic and product lociMultinational bankingTechnical efficiencyRegional diversificationProduct diversificationThis paper explores geographic diversification strategies’ impact on multinational banks’ operational performance within the context of research on globalization and regionalization. We employ a sample of the 49 largest banks from 16 European countries from 2011 to 2018 and proxy operational performance by technical efficiency. We find the impact of geographic diversification on operational performance depends on the locus of geographic diversification—home-regional vs. inter-regional—and the interplay between geographic diversification and banks’ functional focus. More specifically, home-regional diversification together with a concentration on non-interest income-generating activities, including fee and commission and trading income, worsens performance, and diversification across regions alongside a focus on non-interest income-generating activities improves performance. Distinct product characteristics’ ability to facilitate different regional dispersions has important managerial implications for enhancing the success of geographic diversification strategies, a central but unresolved issue in global banking.Elsevier2026-06-19T00:00:00Z2023-01-01T00:00:00Z20232023-08-29T11:08:42Zinfo:eu-repo/semantics/publishedVersioninfo:eu-repo/semantics/articleapplication/pdfhttp://hdl.handle.net/10071/29180eng0969-593110.1016/j.ibusrev.2023.102162Yildirim, C.Kasman, A.Gulamhussen, M. A.info:eu-repo/semantics/embargoedAccessreponame:Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos)instname:Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informaçãoinstacron:RCAAP2024-07-07T02:49:15Zoai:repositorio.iscte-iul.pt:10071/29180Portal AgregadorONGhttps://www.rcaap.pt/oai/openairemluisa.alvim@gmail.comopendoar:71602024-07-07T02:49:15Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) - Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informaçãofalse
dc.title.none.fl_str_mv Efficiency of multinational banks: Impacts of geographic and product loci
title Efficiency of multinational banks: Impacts of geographic and product loci
spellingShingle Efficiency of multinational banks: Impacts of geographic and product loci
Yildirim, C.
Multinational banking
Technical efficiency
Regional diversification
Product diversification
title_short Efficiency of multinational banks: Impacts of geographic and product loci
title_full Efficiency of multinational banks: Impacts of geographic and product loci
title_fullStr Efficiency of multinational banks: Impacts of geographic and product loci
title_full_unstemmed Efficiency of multinational banks: Impacts of geographic and product loci
title_sort Efficiency of multinational banks: Impacts of geographic and product loci
author Yildirim, C.
author_facet Yildirim, C.
Kasman, A.
Gulamhussen, M. A.
author_role author
author2 Kasman, A.
Gulamhussen, M. A.
author2_role author
author
dc.contributor.author.fl_str_mv Yildirim, C.
Kasman, A.
Gulamhussen, M. A.
dc.subject.por.fl_str_mv Multinational banking
Technical efficiency
Regional diversification
Product diversification
topic Multinational banking
Technical efficiency
Regional diversification
Product diversification
description This paper explores geographic diversification strategies’ impact on multinational banks’ operational performance within the context of research on globalization and regionalization. We employ a sample of the 49 largest banks from 16 European countries from 2011 to 2018 and proxy operational performance by technical efficiency. We find the impact of geographic diversification on operational performance depends on the locus of geographic diversification—home-regional vs. inter-regional—and the interplay between geographic diversification and banks’ functional focus. More specifically, home-regional diversification together with a concentration on non-interest income-generating activities, including fee and commission and trading income, worsens performance, and diversification across regions alongside a focus on non-interest income-generating activities improves performance. Distinct product characteristics’ ability to facilitate different regional dispersions has important managerial implications for enhancing the success of geographic diversification strategies, a central but unresolved issue in global banking.
publishDate 2023
dc.date.none.fl_str_mv 2023-01-01T00:00:00Z
2023
2023-08-29T11:08:42Z
2026-06-19T00:00:00Z
dc.type.status.fl_str_mv info:eu-repo/semantics/publishedVersion
dc.type.driver.fl_str_mv info:eu-repo/semantics/article
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dc.identifier.uri.fl_str_mv http://hdl.handle.net/10071/29180
url http://hdl.handle.net/10071/29180
dc.language.iso.fl_str_mv eng
language eng
dc.relation.none.fl_str_mv 0969-5931
10.1016/j.ibusrev.2023.102162
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eu_rights_str_mv embargoedAccess
dc.format.none.fl_str_mv application/pdf
dc.publisher.none.fl_str_mv Elsevier
publisher.none.fl_str_mv Elsevier
dc.source.none.fl_str_mv reponame:Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos)
instname:Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informação
instacron:RCAAP
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reponame_str Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos)
collection Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos)
repository.name.fl_str_mv Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) - Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informação
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