Why and How: The Internationalization of the Banking Sector

  • Federica Sist


This chapter analyzes why banks internationalize. This activity should be developed through certain forms, implying that banks undertake activities abroad in several ways: by themselves or alongside other partners, within the form of an equity or non-equity deal. A bank can do so in order to follow domestic clients operating in foreign markets, to expand markets, to increase profit or to take advantage of different regulatory systems. If the decision to internationalize requires a high degree of penetration, the strategy selected for entering the market or consolidating its position will consequently require a higher involvement in ownership, resources and risks. Branches and subsidiaries are ways to internationalize with high involvement through both non-equity and equity deals (joint ventures, minority or majority acquisitions) or through Greenfield. The reconnaissance of literature helps to understand the opportunities available to banks.


International banking Internationalization Equity deals Non-equity deals Affiliates Branches Subsidiaries 


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© The Author(s) 2018

Authors and Affiliations

  • Federica Sist
    • 1
  1. 1.Libera Università Maria SS. AssuntaRomeItaly

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