The current study aimed at investigating the impact of foreign banks on domestic banks in (Brazil, Russia, India and China) BRIC group of countries during 2001-2011. The importance of this topic is due to instability of financial industry and continuously changing financial markets. Financial liberalization did not only give boom to banking industry but also made it more competitive and unstable. To stay in competition, banks follow risky practices that do not only create problems within financial industry but also become cause of financial crisis. Financial crisis in 2008 is one of the examples of risky practices. Due to the importance of this topic, many researchers conducted studies on it. One of the famous studies on that topic was conducted by Claessens et al in (2001). Their study examined foreign and domestic banks in developing and the developed countries. It was found that foreign banks became the cause of reduction in domestic banks’ income, profit and cost in developing countries. Current study was the extension of Claessens et al (2001) with some amendments. First of all, current study focused on BRIC countries only which are the fastest growing developing countries. Second, this study compared foreign bank’s profitability with domestic bank’s profitability. Whereas, return on assets and return on equity was used as an indicator of profitability. Nearly 1600 bank’s financial data was collected from Bankscope database and Thomason Reuter’s DataStream. The current Study followed a Quantitative research method in order to investigate two research questions; first was the impact of foreign bank’s profitability on domestic bank’s earnings during 2001-2011 and second was foreign and domestic bank’s financial performance during financial crisis. Hierarchical multiple regression in the absence of control variables (foreign bank’s market share, inflation rate, real interest rate and GDP growth rate) explained that foreign banks were positively related with domestic banks in BRIC during 2001-2011. This Study rejected previous research results that foreign banks had negative relation with domestic banks in developing countries. Second result showed that in fast growing developing countries like Brazil, Russia, India and China, domestic banks performed better than foreign banks during financial crisis whereas foreign bank’s profitability had high volatility then domestic banks in financial crisis.

Abstract The purpose of this study is to investigate Anti-Money laundry (AML) schemes of domestic banks and foreign banks by referencing findings from several professionals and scholars, and by analyzing AML policies domestically and internationally. Some commonly used methods of money laundry found in several case studies include: electronic fund transfer, opening joint account, collusion with foreign banks or bankers, forged import or export documents, etc. They all have the following characteristics: cash intensive, multiple transfer, disguise, or cross country and cross border. This study analyzes and confirms characteristics and commonly used methods of money laundry. This study also finds it important for bank staff to understand money laundry methods and characteristics in order to play the guarding role of AML and to prevent this illegal activity. This study proposes that the bank and bank employees have to complete the following tasks: 1. Arrange regular training and testing 2. Establish testing mechanism 3. Implement hierarchical review of abnormal transactions 4. Execute ad hoc review of AML systems 5. Proactively participate in AML training organized by banks or any relevant entities 6. Gain support from each of the management teams. Furthermore, this study finds that three more policies are required due to practical challenges found while bank employees are executing the prevention rules outlined in AML regulations. The three policies will allow smooth execution of AML. They are: 1 System assistance, reports creation and staff training 2. Effective AML is not only about how the regulations are outlined but more importantly about how they are actually executed 3. Bank executives should reinforce awareness and understanding of AML. The government and other related authorities should also ensure that the following tasks are implemented: 1. AML law should be complemented by fair inspection and regular audit 2. Related authorities should clarify the boundary of AML audit system adopted by each bank 3. Related authorities should publish regularly the result of how banks assist in AML and reward banks that proactively prevent money laundry. The above twelve suggestions will maximize the effectiveness of AML execution.

After China entry WTO at the end of 2001, the financial market will open to the outside world progressively , and it will even open business of RMB after five years. It will attract more foreign banks to invest to China's market ; On the other hand, the Taiwanese investing banks want to serves small and medium-sized enterprises invest in China, so it is necessary to the Taiwanese investing banks to invest in China. It is obvious that more and more foreign banks want to make investment in China. For the Taiwanese investing banks or other foreign banks can make investment successfully in China, through the study of the foreign banks make investment successfully and for a long time in China to probe the development of the foreign banks in China. And find the competitiveness of the five cities that absorb the foreign banks in SWOT analysis¡FAnd then analyse with the investment strategy of case banks , such as HSBC , Citibank and Standard Chartered Bank. Finally the study find that the foreign banks still faced the hindrance on a lot of policies when made investment in China. China want to open the private banks at present , and it will form state-run bank , the foreign banks and private banks to compete with each other in China¡¦s financial market in the future. It¡¦s important to the foreign banks to use one's own assets strength and develop investment strategy actively. The best choice is to cooperate with China¡¦s banks and replace competing. Finally the study offers the suggest to the Taiwanese investing banks or other foreign banks¡G(1)Stoke the China Banks of the good performance and have complementary or develop the strategic alliance¡F(2)Take the identity of Hong Kong -invested banks in order to enjoy the CEPA policy¡F(3)Develop variety of the retailing financial business¡F(4)Develop the on-line banks¡F(5)Invest in the big city to forming the function of radiating¡F(6)Plant the local market deeply with the localization strategy¡F(7)Cooperate with private bank.

Former research on entry strategies are generally focused on finding the determining factors for MNCs' entry timing or entry mode. Albeit MNCs' ultimate reason of investing in foreign markets are gaining profits, number of papers discussing MNCs' strategies and the performance of their subsidiary are far away from representing its importance ¡V especially in the realm of service industries. Meanwhile, along with advanced technology and the trend of globalization, international trades are flourishing. Financial firms are as well in the bloom due to their job as being capital borrowers and lenders. In Taiwan, since the government allowed foreign banks to invest in 1964, foreign banks contributed much in breeding financial innovation and training professionals. Their performances are as well benchmarks for domestic banks. Combined with aforementioned backgrounds and motives, this thesis aims at discussing the relation between the resources and decisions of the foreign banks' parent firms and its Taiwan branches' performance in order to figure out the key factor affecting the performance of these banks' Taiwan branches. Thus, this study will serve foreign banks' Taiwan branches as samples and list resource condition variables of their parent banks according to OLI framework. The entry timing of these foreign banks is served as the strategy behavior variable. Via analyzing sample data before and after the Financial Holding Company Act and Merger and Acquisition of Financial Institutions Act with multiple regressions, this study intends to confirm the key factor affecting the performance of these banks' Taiwan branches. According to the results, the key factor would be entry timing. That is, regardless of the environmental challenges posed against these banks, the first mover advantage dominates in explaining the performance of these banks' Taiwan branches.

Thesis (Ph. D.)--American University, 1988. / Includes bibliographical references (leaves 411-425).

The recent LIBOR rate scandal in which Barclays received a sizeable fine for their role in the exploitation of the Interbank rate has had a negative reputational impact on Absa, as Barclays’ owns more than 50.1 per cent of Absa’s shares. This raises the question as to what the impact is of foreign bank ownership on a developing country.The purpose of this research is to ascertain whether a developing country can attain economic growth benefits in the form of increased levels of competition and efficiency in its banking sector, by implementing the foreign bank entry or more specifically the foreign bank ownership of local banks, economic liberalisation reform.Using econometric analysis the study calculated the levels of competition and efficiency from the annual firm-level financial statements for the period 1999 to 2010. This was done in two phases, where Phase One was from 1999 to 2004 and Phase Two was from 2005 to 2010 representing the periods pre- and post the Barclays’ acquisition of Absa.The findings of the two phases were then compared and indicated that there was no significant change in the level of competition or in the level of efficiency in the South African banking sector.The findings of the two phases were then compared and indicated that there was no significant change in the level of competition or in the level of efficiency in the South African banking sector. / Dissertation (MBA)--University of Pretoria, 2012. / Gordon Institute of Business Science (GIBS) / unrestricted

Le premier chapitre de ma thèse est une revue de la littérature générale relative aux fusions-acquisitions bancaires. Le deuxième chapitre propose une analyse empirique des activités de fusions et acquisitions dans le secteur bancaire chinois. J’analyse 14 banques commerciales chinoises entre l'année 1998 et 2007 en utilisant l’indice de Malmquist. Les résultats montrent que la productivité de ces 14 banques commerciales chinoises s’est accrue annuellement de 6,3%. Le troisième chapitre utilise un modèle théorique pour analyser l'effet complexe d'entrée des banques étrangères sur l'activité des banques domestiques. Je modélise trois modes d’entrée de banques étrangères : (1) la création d'une nouvelle filiale, (2) des fusions et acquisitions avec une banque publique et (3) des fusions et acquisitions avec des Joint Stock Banks. Nous constatons que, lorsque l'entrée de banques étrangères se fait par la création d'une nouvelle filiale, les effets positifs dominent les effets négatifs quand la banque étrangère a un assez bon accès aux marchés monétaires internationaux. Sur la base de l’utilisation de la base de données « Thomson One », le quatrième chapitre de thèse est consacré à une l'analyse empirique (une analyse de régression) pour de 6 pays asiatiques pour la période 1998-2011. Nos résultats indiquent que l'entrée des banques étrangères est associée à une augmentation de la rentabilité des banques domestiques. Nous avons constaté que les fusions-acquisitions entre des banques domestiques et étrangères ont un effet positif sur la rentabilité des banques domestiques, en particulier pour les activités nécessitant le moins d’expertise. / The first chapter of my thesis is the general literature review of mergers and acquisitions in the banking industry. The second chapter provides an empirical analysis founded on the Malmquist total factor productivity change. I analyze China's 14 commercial banks from year 1998 to year 2007 by making use of Malmquist total factor productivity index. The results show that these 14 Chinese commercial banks experienced average of 6.3% annual productivity growth rate. The third chapter of my thesis is a theoretical model about impact of the entry of foreign banks for domestic banking industry. I select three entry modes: the creation of a new subsidiary, the M&A activity with a State Owned Bank and the M\&A activity with Joint Stock Banks. The model considered the conditions under which domestic bank shareholders increase their profits after an entry mode corresponding to cases (2) and (3). The fourth chapter of my thesis is based on the theoretical model of chapter 3, I conduct an empirical analysis. This chapter is concerned mainly the foreign bank entry effect in developing Asian economies. Using a data set of 86 banks from 6 Asian countries (China, India, Indonesia, Korea, Philippines and Thailand) for the 1998-2011 period, this chapter examines the effect of foreign banks M&As activities in domestic banking industry. Our results indicate that foreign bank entry is associated with an increase in domestic banks' profitability and the level of foreign bank penetration is more important than whether foreign bank conducted M&A activities with domestic banks.

Since the opening of the Central, Eastern and South Eastern European (CESEE) banking market, foreign banks, have started to invest in the financial sector of emerging economies. Economic research highlights that foreign banks have brought advanced technology, improved management expertise, upgraded risk management techniques and generally more efficient and competitive banking practices into CESEE countries (Clarke, Cull, Peria and Sànchez, 2002; Eller, Haiss and Steiner, 2006). However, there is hardly evidence about how this large-scale knowledge transfer has been achieved and what knowledge has actually been transferred. This paper intends to fill this gap. Two in-depth case studies of bank acquisitions by Austrian banks in CESEE give insight into the methods and content of knowledge transfer within the post-acquisition integration. A questionnaire sent out to CESEE subsidiaries of Austrian banks additionally provides information on the topic. The results show that knowledge transfer mainly occurs in international teams and during international meetings, trainings and development programs and that it is supported by information and communication technologies. Results further show that the content, methods and magnitude of knowledge transfer efforts change along the stages of post-acquisition integration. (author's abstract)

An extensive literature has examined many of the consequences of foreign bank participation in emerging markets. However, research to date has largely focused on the effects of foreign bank participation in domestic banks and yet revealed little about the situation for foreign banks. The thesis, examines Citibank in Turkey as a particular case in order to address this gap. The results show that Citibank

abstract: This thesis aims to investigate the impacts of foreign banks’ management model on their degree of localization and operating efficiency. I decompose their management model into five major factors, including two formative factors and three reflective factors. The two formative factors are (1) strategic orientation and (2) target customers, and the three reflective factors are (1) top management team composition, (2) organizational structure, and (3) managerial authority and incentives. I propose that the formative factors influence foreign banks’ degree of localization, as demonstrated by the reflective factors, which subsequently influence foreign banks’ operating efficiency in China. To test the above proposition, I conduct the empirical analysis in three steps. In the first step, I investigate foreign banks’ management model by surveying 13 major foreign banks locally incorporated in Mainland China. The results suggest that these 13 foreign banks can be categorized into three distinct groups based on their management model: intergrators, customer-followers, and parent-followers. The results also indicate that intergrators have the highest level of localization while parent-followers have the lowest level of localization. In the second step, I conduct DEA (Data Envelope Analysis) and CAMEL (Capital Adequacy, Asset Quality, Management, Earnings, Liquidity Analysis) to assess the operating efficiency of these 13 foreign banks. The assessment is conducted in two ways: 1) the inter-group comparison between foreign banks and local Chinese banks; 2) the intra-group comparison between the three distinct groups of foreign banks identified in the first step. The results indicates that the principal factor driving the operating efficiency of both local Chinese banks and foreign banks is the comprehensive technical efficiency, which includes both the quality of management and the quality of technical elements. I also find the uptrend of technical efficiency of the integrators is more stable than that of the other two groups of foreign banks. Finally, I integrate the results from step one and step two to assess the relevance between foreign banks’ localization level and operating efficiency. I find that foreign banks that score higher in localization tend to have a higher level of operating efficiency. Although this finding is not conclusive about the causal relationship between localization and operating efficiency, it nevertheless suggests that the management model of the higher performing integrators can serve as references for the other foreign banks attempting to enhance their localization and operating efficiency. I also discuss the future trends of development in the banking industry in China and what foreign banks can learn from local Chinese banks to improve their market positions. / Dissertation/Thesis / Doctoral Dissertation Business Administration 2016