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This chapter analyzes the relations among bank mergers, changes in boards and their networks, and changes in the global footprint of merging banks. We examine all mergers involving U.S. banks with foreign branches between 1986 and 2004. We find that while the largest banks have become even larger through mergers, their boards have stayed roughly the same size with the same pattern of connections, leaving banks relatively less central in the intercorporate network. And while global banks previously had more globally oriented boards, this is no longer the case, as the link between board networks and strategy has become more tenuous. Because global banks were particularly prone to merging, the average commercial bank in the U.S. is now far more domestically oriented than firms in most other industries. American banks have thus become more domestic at the same time that the rest of American industry has grown much more global.

The financial services industry is experiencing rapid consolidation globally. Consolidation has proceeded not only in the same market but also across different market segments and across national boundaries. In this paper, we (a) outline the general trend of the mergers and acquisitions (M&As) and consolidation of the financial service industry in the U.S. and in the global economy; (b) identify and analyze the reasons that contribute to the consolidation of the financial service industry; (c) examine some cases of successful and unsuccessful financial service M&As; and (d) arrive at some strategic implications.

Deregulation and other factors permit and encourage financial institutions to become more integrated, both within their own (financial) industries, such as banking and insurance, and across these industries. Financial regulators have responded with like integration. As financial institutions increasingly compete with firms from other industries and areas, financial regulators similarly compete more across borders. The resulting competition in financial regulation enhances innovation, choice, and efficiency. The advent of home-run regulation, which in general allows financial institutions to adhere only to the financial regulations of their home area and is spreading across the US and Europe, may allow numerous regulatory regimes within a given market.

In this chapter we study the intra-group transactions between the parent bank and its foreign subsidiaries in European Union (EU) countries during the crisis. We use hand-collected data from annual statements on related party transaction and find that they may create a serious problem for the stability of the foreign banks’ subsidiaries. Moreover, as some of those subsidiary banks were large by assets in some of the member states the related party transactions with the parent bank created a serious threat to the host countries’ financial system stability. We attribute this transaction to the weak governance in foreign subsidiaries. We suggest improvements in governance as well as greater disclosure of related party transactions in bank holding companies in Europe.

The development of banking in Africa followed the demand of exchange networks from traditional indigenous economies to colonial exchange with the European world. The establishment of European banking institutions reflected the needs of the capitalist economy introduced by colonialism. The banking management of late nineteenth century and early twentieth century European banks adhered to the interests of shareholders. This chapter shows the emergence of well-managed banks in Africa, but after decolonization the political economy of African independence resulted in state capturing of financial institutions in most African countries. The South African banking system developed in close adherence to the British model. State-owned post-independence banks in Africa failed to deliver the development envisaged. The chapter shows the adverse impact of global economic developments on Africa, resulting in high debt levels. Structural adjustment of African economies and new market-oriented policies allowed the development of locally owned private banking institutions. The high-cost structure of the formal banking system from the dominant South African banks incentivised the mobile money innovation, an arena where African entrepreneurs lead global markets. Financial inclusion remains low in Africa.

This chapter first reviews some of the background concepts on central bank digital currency (CBDC) to provide a broad context, before diving into wholesale CBDC often a starting point for central banks to build CBDC prototypes based on distributed ledger technology (DLT), as it involves less complexity in experimentation. This chapter also examines cross-border CBDC, often an extension of wholesale CBDC prototypes based on DLT. The next chapter will then discuss retail CBDC as well as the prospects of economy-wide roll out of CBDC going forward.

What are the current trends that mark out the process of internationalization of higher education? In what directions do these trends influence the direction of research and development in African universities? Does internationalization of higher education have the potential to boost knowledge production relevant to Africa’s development needs or it will further hasten the marginalization of both African universities and African development agendas within the global network of scientific knowledge? Internationalization of education is not new. Historically, students have sought better higher education abroad influenced by the desire to benefit from better opportunities provided by universities in the developed countries. The current phase of higher education internationalization has however emerged more vigorously in the 21st century and is associated with the twin trends of globalization and liberalization. Proponents of globalization have argued that higher education is bound to be more strongly affected by worldwide economic developments. They also point out that higher education institutions in developing countries should embrace aspects of internationalization to boost their efforts to be ranked among the best league of universities globally. At the national level, internationalization of higher education is presented as a process that institutions in developing countries must embrace in order to address the persistent challenges of sustainable development. For universities in Africa, the literature argues that internationalization provides them with opportunities that cut across disciplines, institutions, knowledge-systems, and nation-state boundaries thereby exposing the institutions and academics to the world’s best scientific research and infrastructures. In summary, it is contended that internationalization is a strategy to realize success in human-capability and institutional-capacity development in the universities. This chapter revisits these assertions and their tenacity to developing a culture of research and innovation in African universities, and linking the universities to the continent’s development aspirations.

This chapter reviews digital payment infrastructures at the retail, wholesale and cross-border levels, available operating and governance models and trade-offs. Various developments in the field of digital payments, key challenges and the role of the central banks in helping to address those challenges are introduced. This chapter starts by examining issues in retail payments, before moving on the wholesale and large-value payments, real-time gross settlement (RTGS) which is the core settlement of payment systems before examining cross-border payments. This chapter ends with an overview of the role of central banks in promoting digital payment infrastructures.

Cross-border investment has been a large part of merger and acquisition activity in the Latin American banking sector. Spain and the United States have been the largest investors, participating in almost 70% of the total transaction value. After an explanation of the importance of foreign direct investment and implications for cross-border investment, this paper focuses on the largest investor in the region's banking sector and attempts to find an explanation for the increasing participation of Spanish banks. The paper alludes to a potential new reality: Latin America could be the geographical location where major contenders in banking will be engaged in battles for global dominance.

The recent development of higher education in Africa has been spurred, in part, through a variety of cross-border higher education (CBHE) initiatives. However, this is not a new trend and this chapter traces the development of CBHE activities in Africa from the early 1900s through the current era. While the earliest forms of CBHE were largely fostered through Western nations providing advice and validation to institutions in Africa, the types of CBHE engagements are much more varied, including collaborations among African nations. The chapter also explores the push by some African nations to become educational hubs, the variability of CBHE policies across nations, and the shift of collaboration from the global north to south.