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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.

This chapter examines how foreign banks respond to domestic monetary policy in host countries during crisis periods, in particular, the response shown toward the Asian financial crisis of 1997–1999 and the global financial crisis of 2008–2009. By observing 283 domestic and foreign banks in seven emerging Asian economies, we find that foreign banks are slower than domestic banks in adjusting the growth of their loans to changes in host monetary policy. This inertia by foreign banks is found to be more pronounced in the recent 2008–2009 global crisis than in the 1997–1999 Asian regional crisis, suggesting that the buffering/hampering effects of foreign banks on the effectiveness of the domestic monetary policy transmission mechanism become stronger in a recent global crisis originating from outside Asia than a regional crisis imploded within Asia a decade earlier. We also find that foreign banks’ lower sensitivity than domestic banks to host monetary policy during the crisis periods is heterogeneous, depending on factors such as the extent of the adverse impact of crises on parent banks, the scope of business operation by parent banks, and foreign banks’ mode of entry into host banking markets.

The purpose of this study is to investigate the perceived differences in brand analysis dimensions, such as brand-specific association (represented by perceived brand quality, brand price, brand emotional value and brand social value), brand impressions (represented by perceived brand image and general brand awareness) and brand credibility (represented by perceived brand trustworthiness and brand expertise), for young consumers in the context of banking services in India. All three types of banks operating in the Indian market are compared: state-owned banks, private (Indian) banks and global (foreign) banks.

The authors follow a cross-sectional design in this study. A structured questionnaire is created with the help of well-established scales. Reliability and validity tests are performed on all the dimensions of the scale. Exploratory factor analysis, ANOVA and ordinary least squared multiple regression analysis are performed to test the proposed hypotheses empirically.

The authors report significant differences in perceptions among young consumers among the three types of banks for all the dimensions of brand-specific associations, that is, perceived quality, perceived price, perceived brand social value and perceived brand emotional value. The authors find partial support for the hypotheses presented in this study concerning differences in three bank types among young consumers related to general brand impressions and brand credibility.

The results provide insights on the perceptions of the global and local brands among young consumers in the context of the banking industry. This will aid practitioners in assessing the relative position of their brands with respect to their global/local counterparts. These insights would help brand managers to design effective marketing mix strategies to target the young Indian consumers more effectively.

This is the first study that includes the concept of brand credibility along with brand-specific associations and general brand impression in investigating purchase intention of banking services by young consumers.

This paper aims to construct a measure of integration among global banks and examine its impact on bank insolvencies and bank crises.

The authors apply principal component analysis to measure a bank’s degree of integration to the global banking market. Moreover, they test whether bank integration affects bank insolvency risk, in which they treat the equity of individual banks as a call option.

The authors find that the banking industry has become more globally integrated over the past two decades. At the individual bank level, results indicate that banks with higher integration levels have more assets, more nontraditional banking services and more interbank businesses. Overall, they find that a bank’s integration level is negatively associated with insolvency risk, which suggests that greater integration with global markets diversifies a bank’s risk. At the country level, banking systems with less integrated big banks, or more integrated smaller banks, are more stable and hence less likely to suffer a banking crisis.

The authors construct a novel measure of integration among global banks and examine its impact on bank insolvencies and bank crises.

This paper aims to explore the online corporate social responsibility (CSR) communication by domestic and global banks operating in the United Arab Emirates.

Through a qualitative content analysis, the study examines the strategies banks use to market their CSR initiatives on their corporate websites. CSR marketing strategies are classified with reference to Kotler and Lee’s (2005) categorization.

The analysis indicates that overall, all CSR marketing strategies, as proposed by Kotler and Lee (2005), are used by the domestic UAE banks with the most frequently used being cause-promotion, philanthropy and socially responsible business practices. Government owned and conventional banks display patterns congruent to the communications observed in the global sample. Islamic banks have a less diversified approach relying mostly on philanthropy with only one Islamic bank using four of the six strategies.

The present study provides insight into how CSR is communicated within one of the largest industries in the fast-growing economy of the UAE. The observations reported here could help corporate communication practitioners and managers in domestic corporations that contribute to the Islamic economy to understand how to benchmark better and to communicate more effectively about their CSR.

Communicating CSR through corporate websites is one of the most effective ways for organizations to inform and engage stakeholders, earn legitimacy and reap the intangible and tangible benefits of practicing CSR. However, in emerging economies in the Middle East, online CSR disclosure remains limited while corporate websites are not used effectively as strategic tools. This study explores online CSR communication (CSRC) by banks in the dynamic, emerging economy of the United Arab Emirates.

The study uses an adaptation of the analytical framework used by Chaudhri and Wang (2007) to examine the prominence and extent of the CSR information on the corporate websites of domestic and global banks in the UAE. It further compares domestic and global banks' CSRC patterns as well as domestic/government-owned versus private banks and conventional versus Islamic banks.

About 70% of the domestic banks in the UAE provide information about their CSR activities. CSR information is moderately to highly prominent for the majority of the domestic banks, but the extent of the information presented is minimal (1–2 pages). Domestic/government-owned and conventional banks communicate their CSR more prominently and extensively than private and Islamic banks. Domestic/government-owned banks tend to follow the CSRC patterns observed in global banks.

Despite the increasingly important role of the United Arab Emirates within the Middle East as well as on the global business arena, very little is known about whether and how companies in the country approach CSR. This is the first study focusing on CSRC within the entirety of a single business sector within the United Arab Emirates.

This paper aims to examine the role of foreign banks in transmitting global monetary policy shocks to India. Further, the authors try to explore the international bank lending channel and analyze the impact of global monetary policy on Indian macroeconomic variables.

The authors use a structural break unit root test and structural vector autoregression on monthly data from 1998 to 2018.

The study finds that the global monetary policy is significantly determining foreign banks’ lending in India; the evidence of a portfolio re-balancing channel in the process of global monetary policy transmission to the Indian economy; the exchange rate is significantly explaining the foreign bank credit dynamism in India; and evidence of international monetary policy spillover to the Indian economy.

This is the first attempt to analyze the role of foreign banks in the transmission of global monetary policy shocks to India, where the literature availability is limited. The finding of ineffective domestic monetary policy on foreign bank lending opens the need for an in-depth and diversified analysis of the role of foreign banks in the transmission of domestic monetary policy.

The purpose of this paper is to investigate the expected outcomes, both of positive and negative returns occurred by shariá credit instruments in global Islamic banks. The annual panel data from 2005 to 2012 is collected from 40 Islamic banks from 12 countries and value at risk (VaR) technique is employed in the investigation process. The findings of this study indicate several outcomes: first, majority of Islamic banks use debt-based financing (DBF) and avoid asset-based financing (ABF) due to the lack of secured rate of fixed returns and collateral. Second, the ABF financing shows the positive returns. Third, interestingly, DBF financing faces higher credit risk compared to ABF even DBF secures its financing through tight policy implementation. Finally, this paper comes up with policy recommendations for the further reduction of credit risks and improvement of bankers’ confidence level in implementing the ABF financing policy.

VaR on panel data.

Shariá credit instruments play an important role.

Data findings.

Fully original.

Research investigating the internationalisation process of firms from Sub‐Saharan Africa (SSA) is limited. The purpose of this paper is to draw on extant work on internationalisation theory to propose an integrative framework that investigates the internationalisation process of African banks.

Using a qualitative, case‐based approach, the study explores the distinct cases of four banks (three in Nigeria and one in Kenya/Mauritius) and explores their internationalisation behaviour and pathways to understand how they have leveraged their ability to internationalise their businesses.

The findings illustrate how the internationalisation pathways of African banks are shaped by a balancing act of leveraging accumulated global and regional strengths to achieve international growth and expansion.

The study acknowledges that it draws from a limited empirical base on a very important topic and in so doing it provides directions for further research towards understanding the internationalisation process of firms in Sub‐Saharan Africa (SSA) and highlights some policy implications.

The paper adopts a process perspective to explore and understand the internationalisation of African banks. Africa‐specific studies of internationalisation are very limited, and this study provides a critical extension of the Western‐based internationalisation theory to the African context.