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With rising industry consolidation in the banking industry, it is unclear whether community banks may find more or less market opportunities. This paper aims to investigate how industry consolidation may affect community banks’ market share outcomes. The second goal of this paper is to establish the ways in which community banks may successfully manage market share growth goals that may be antithetical to the principles of being a local brand.

The empirical analysis is on the US banking industry, spanning the years from 1994 to 2018. This comprehensive panel data set includes county-year level granularity for more than 15,000 banks. Panel regression models that include bank-, county- and year-specific fixed effects are deployed.

It is found that local brands, operationalized as community banks in this study’s empirical context, are having the most success in consolidated market contexts. When pursuing market share growth, a distribution strategy to saturate a local market is found to be advantageous while expanding across geographies is less advisable for community banks.

The findings shed empirical light on the challenges and opportunities for community banks, thereby contributing to the banking industry literature and to an emerging stream of research on local brand management. By demonstrating the means of which growth can be successfully managed by local brands, the important and largely unanswered question of how a local brand can effectively grow is addressed.

Foreign and local banks in Malaysia are competing in terms of skilled staff, innovative products and services, rendering quality services and customer satisfaction. The purpose of this paper is to examine the overall service quality and customer satisfaction of both foreign and local banks.

The data used to test the hypothesis were collected from 748 foreign and local bank customers in Malaysia. The research model was analysed using a structural equation modelling technique.

Results show that knowledge and staff competencies, as well as convenience of the bank is more significant for local bank customers while bank image and internet banking are important components for foreign bank customers. The results also reveal that foreign bank customers have higher satisfaction as compared to local bank customers.

No analysis is undertaken of any difference in the service quality dimensions between banks of different size. Further research on banking services could usefully test services quality dimensions across banks of different sizes.

The findings serve as a valuable reference for local banks understand service quality challenges they may face from foreign banks in this competitive industry. Findings suggest that, to provide high-quality services, financial institutions need to heighten customer satisfaction differentiation strategies.

The outcomes of this study enhance the knowledge on the performance of both local and foreign banks in Malaysia as well as customer satisfaction, which are invaluable to all bank managers and industry players in improving their services.

The purpose of this paper is to pinpoint key conduits promoting knowledge spillovers through inward foreign direct investment in the banking sector.

The data were obtained by a survey. The survey data were collected from managers of five major local banks in Korea. The survey was conducted during May 10-June 30, 2015 with a total of 581 self-administered responses finally collected at the end (response rate: 60.5 percent).

Based on the survey data collected from the survey, the results indicate that knowledge spillovers from foreign to local banks occur in the Korean context. Demonstration effect, worker mobility and absorptive capacity of local banks are found to be effective conduits for knowledge spillovers. In addition, the authors have also found that competitive pressure negatively influences worker mobility leading to knowledge spillovers while two other elements (i.e. demonstration effect and absorptive capacity) positively mediate the relationship between competitive pressure and knowledge spillovers.

It is essential for the managers of multinational banks vigorously consider placing a strong emphasis on security of internal information and management of own personnel as the knowledge outflow through the demonstration effect and worker mobility is critical. For the managers of local banks, the discoveries suggest that active investment in human resources to maximize knowledge spillovers through the demonstration effect and through absorptive capacity is heightened by building an internal knowledge base.

The study contributes to the extant literature in the field of international business in two key ways. First, it examines the knowledge spillovers in the banking sector, a regulated industry, in Korea where empirical research is sparse. This paper’s second contribution is the finding of the key conduits of knowledge spillover phenomena by predicting and identifying the elements which affect the magnitude of knowledge flows from foreign to local banks.

The purpose of this paper is to give a nuanced picture of how the local bank sector influences new firm formation and how this differs along the urban-rural hierarchy. Thus, the present paper increases the knowledge concerning the importance of the local bank sector in influencing new firm formation. In this respect, it also sheds light on how banks influence regional growth through their impact on start-ups.

The empirical design is based on a cross-sectional approach from 2010, where Swedish municipalities are employed as the unit of observation. To overcome a possible endogeneity problem, an instrumental variable approach is applied. A two-stage least squares approach is employed in which instruments for the local bank sector in 2010 are utilised.

The findings present positive relationships among the average size of the bank branches, independent banks per capita, bank branches per capita, bank competition, and the number of local start-ups in Sweden. Hence, access to financial funds is important for new firm formation. When the sample is divided across the urban-rural hierarchy, differences arise concerning the importance of the local bank sector. Independent banks per capita and bank branches per capita tend to have a larger impact on firm formation in rural municipalities.

This paper is novel in its detailed approach to describing the local bank sector. This topic is important for local and national policy makers, demonstrating the importance of the local bank sector for a growing and healthy regional economy. This study is also the first study on this topic in Sweden.

This chapter investigates a shock transmission path between a home country (a country where globalized banks’ headquarters are located) and a host country (Indonesia as the emerging market) through the lending channel of global banks’ local branches (i.e., the internal transfer channel). Using novel data of monthly individual foreign bank’s balance sheet in Indonesia, the author finds the evidence that shocks to a parent bank and a home economy are transmitted to a host economy through the foreign banks’ internal capital market. With the Indonesia banks’ capital injections and their difficulty in financing dollar funds without risk premiums since the 1998s crisis, the foreign banks’ dollar lending in Indonesia is a good showcase of internal capital markets. A change in a home stock market index and industrial production appears to have a negative effect on growth rates in foreign currency loans of foreign banks in the host market. On the other hand, high growth rates in the parent bank’s stock price in the home market lead to an increase in foreign banks’ US dollar lending in the host country. This effect does not appear in local currency lending because limited hedging instruments against foreign exchange risk results in immobility of bank capital in the local currency.

This article demonstrates the application of geodemographic segmentation to the service industry by using commercial banking as a case example.

Data were collected through self‐administered questionnaires. Two sets of variables were used to profile market segments.

Study results indicate that there are substantial differences between customers of local and national US banks in their evaluation of the relative importance of bank service charges and overall confidence in the bank. Compared to national banks, local banks were evaluated more positively by customers in areas such as extra services offered by the bank, image of the bank, and convenience of the bank.

More focused and concentrated marketing strategies are suggested to achieve better local bank performance.

Recent theory and research suggests that local relational networks among business organizations play an important role in establishing and preserving a locale's identity. Such networks facilitate the development, dissemination, and enforcement of norms and cognitive frames that guide local business behavior. They also provide a vehicle for the consolidation of local business interests and for the coordination of local business strategic action. We examine the factors that influenced the likelihood that the CEOs of large corporations sat on the board of directors of large locally headquartered commercial banks in the 1960s. We focused on the 1960s because doing so allows us to make use of an exceptional comprehensive data set on the attributes and relationships of large firms and their leaders. We examine connections to commercial banks because these banks played a crucial role in community development in the 1960s. We find that both the class attributes of corporate CEOs (as reflected in their ownership of the firm and their affiliation with elite educational, social, and policy-making institutions) and the organizational attributes of their firms (as reflected in their financial structure, geographic reach, and age) influenced a CEO's propensity to sit on the board of a locally headquartered bank. These results suggest that future research on participation in local relational networks should take into account both class and organizational theories. They also suggest that future research on the class and organizational underpinnings of relational networks should pay closer attention to spatial relations.

This paper seeks to understand the evolution of financial intermediation in the course of China's economic transition.

The research is based on a unique data set collected by the authors and other collaborators from a 1998 survey of financial institutions, enterprises, and government officials in southern China.

Based on an empirical investigation of rural financial reforms, it is argued that China's two‐decade long financial reform was a gradual process that accommodates reforms in other sectors and responds to changing policy goals and the economic and institutional environment in which financial institutions operate. Although using standard measures of financial system performance may cast doubt on the effectiveness of China's rural banking system, when one understands the different roles that it has been asked to play, it can be argued that it has not operated so poorly.

In conclusion, it is found that China's rural economic environment is still changing. If the system continues to change in the future, responding to pressures in the economy, further financial reforms will almost certainly emerge in the coming years.

These findings, although primarily from the 1980s and 1990s, are still helpful in understanding the reform process that is currently ongoing.

This paper will help readers make sense of agricultural financial reforms and will allow for more discourse over what has been accomplished and what still is needed.

This is the first manuscript to comprehensively put China's rural financial reforms into the context of modern economic analysis, explaining why China's government proceeded as they did and why the reforms have unfolded in such a stop and start manner.

This paper compares the relative influence of perceived brand localness (PBL) and perceived brand globalness (PBG) on customer behavioral responses of brand loyalty (BL), willingness to pay price premiums (WTPP) and positive word of mouth (PWOM) towards retail banks. It further examines the mediating effects of brand trust (BT) on these relationships.

Data were collected from 320 retail banking customers in Trinidad and Tobago and analyzed with exploratory factor analysis and multiple regression analysis (MRA).

The findings show that PBL has a more substantial impact on BL, willingness to pay a price premium and PWOM compared to PBG. The results also show that BT mediates the relationships between PBL and PBG on customer brand-related responses. The effect is more substantial for brands perceived as local.

The findings have important implications for banks in developing countries and suggest that localized positioning and branding strategies will trigger preferential brand-related responses in retail banking services. The paper ends with a discussion on the practical implications of these findings and present future research opportunities.

The paper responds to the rising skepticism and discomfort with globalization. It offers bank managers valuable insights on how global and local branding strategies affect brand-related outcomes. The study contributes to the literature by empirically comparing the effects of PBL and PBG in retail banking and demonstrating the unique contribution of BT in explaining why customers respond differently to global and local brands. It also simultaneously considers multiple customer responses.

In recent years, Japanese co‐operative banks have been attracting new interest among academics and the population generally as institutions through which deprived communities can be revitalized. They have been shown to be capable of promoting both social co‐operation and economical development through the financing of new social enterprises by investments coming mainly from local residents and existing social organizations. This paper aims to address the central questions of what Japanese co‐operative banks can do to encourage co‐operation among local residents and social enterprises so that they willingly invest their money in the development of their local community.

In order to explore these questions, two Japanese co‐operative banks are compared by means of a questionnaire survey and semi‐structured interviews with their investors and boards of directors. The main reason for focusing this investigation on these two banks was that despite the similarity of their political, economical and demographical backgrounds, one of them showed a steady growth in local investment while the other failed to produce a similar level of local engagement.

The findings of the paper clearly demonstrated that when a co‐operative bank acts as “community organizer”, undertaking tasks which are outside its usual sphere of activities as financier, and its board includes members of the social enterprise sector, its positive impact on community development is more effective. However, it also became clear that a vital feature of this kind of endeavour is the utilization of expertise derived from members of the local community.

The paper makes an important contribution to the understanding of co‐operative banks as community organizers. Its originality lies primarily in the fact that it was the first time that this type of research has been conducted on Japanese co‐operative banks.