We study whether foreign banks increased or decreased lending in the United States during the 199... more We study whether foreign banks increased or decreased lending in the United States during the 1990-1991, 2001, and 2007-2009 recessions. Using a matched sample of foreign banks paired with domestic banks, univariate tests show that commercial and industrial loans by foreign banks increased in the 1990-1991 recession, decreased in the 2001 recession, and marginally increased in the 2007-2009 recession. Since recessions have differential impacts in an economy, we tested the lending behavior using granular data at the local metropolitan statistical area (MSA) level. Multivariate test results show that foreign branches engaged in countercyclical lending in the 1990 and 2001 recessions and foreign subsidiaries in the 2008 recession by lending in MSAs where GDP was falling or unemployment increasing. We conclude foreign banks continue to play a positive role in the American economy.
Journal of International Financial Markets, Institutions and Money, 2011
We estimate a global cost function using an international database of commercial banks to test fo... more We estimate a global cost function using an international database of commercial banks to test for economies of scale and scope. Banks he segregated into those headquartered in "functionally se~arated" countries, which limit commercial banks from engaghg h non-traditional banking activities, and into "functionally integrated" banking countries, which permit some form of universal banking. Using data for 1988, the results show economies of scale to exist only for small and representative (middle quartile) banks in functionally integrated banking countries. Moreover, we investigate the potential for cost savings from combining traditional banking (lending) activities with non-banking financial activities. Evidence of economies of scope is found between lending and invesbnentltrading activities. Significant diseconomies of scope are found for combmations of real estate/msurance with investment banking activities. Country by country analysis is generally consistent w...
Journal of Behavioral and Experimental Finance, 2021
Abstract Central banks of Brazil, Chile, and Colombia in the late 1990s pledged transparency in t... more Abstract Central banks of Brazil, Chile, and Colombia in the late 1990s pledged transparency in their monetary policy decisions. Univariate tests show improvements in the forecasts of monetary policy actions in Brazil and Colombia but not in Chile. Multivariate tests examining the response of market interest rates to central bank announcements show transparency efforts lowered monetary policy news and macroeconomic news in Brazil and only partially in Chile and Colombia. Transparency efforts are effective when accuracy of forecasts improves and variability is reduced. Finally, both short- and long-term rates are shown to be impacted by monetary policy news and macroeconomic news.
The field of international business is dynamic, complex, and challenging, vulnerable to fast-brea... more The field of international business is dynamic, complex, and challenging, vulnerable to fast-breaking events such as economic shifts, political turmoil, and natural disasters. This concise and affordable textbook will help future international business executives acquire the skills to function effectively under these challenging conditions. "Basics of International Business" incorporates coverage of the ongoing turmoil in the world financial markets. It's designed to familiarize students with the external environments that affect international businesses, to show them how to recognize the processes in identifying potential foreign markets, and to help them understand the functional strategies that can be developed to succeed in this highly competitive environment. The text focuses on 'must-know' core concepts in international business. The concepts, theories, and techniques are organized around seven major topical areas: introduction and overview of international business; environmental variables of culture, politics, and economics; entry strategies for new markets and countries; international trade and foreign direct investments; integration of functional areas; specific functioning areas (marketing, finance, accounting, etc.); global outsourcing and its role in international operations. The text is filled with helpful charts, chapter summaries, exercises, and applied cases. A detailed instructor's manual including course outlines, classroom exercises, and a complete test bank is available to adopters on the MES website.
... This finding is associated with a greater employee identification and faster information proc... more ... This finding is associated with a greater employee identification and faster information processing. 292 MA Gurdon and A. Rai are correct. However, if capital-labor ratios decline or register nochange, this would reject one of the equilibrium conditions of their models. ...
We study whether foreign banks increased or decreased lending in the United States during the 199... more We study whether foreign banks increased or decreased lending in the United States during the 1990-1991, 2001, and 2007-2009 recessions. Using a matched sample of foreign banks paired with domestic banks, univariate tests show that commercial and industrial loans by foreign banks increased in the 1990-1991 recession, decreased in the 2001 recession, and marginally increased in the 2007-2009 recession. Since recessions have differential impacts in an economy, we tested the lending behavior using granular data at the local metropolitan statistical area (MSA) level. Multivariate test results show that foreign branches engaged in countercyclical lending in the 1990 and 2001 recessions and foreign subsidiaries in the 2008 recession by lending in MSAs where GDP was falling or unemployment increasing. We conclude foreign banks continue to play a positive role in the American economy.
Journal of International Financial Markets, Institutions and Money, 2011
We estimate a global cost function using an international database of commercial banks to test fo... more We estimate a global cost function using an international database of commercial banks to test for economies of scale and scope. Banks he segregated into those headquartered in "functionally se~arated" countries, which limit commercial banks from engaghg h non-traditional banking activities, and into "functionally integrated" banking countries, which permit some form of universal banking. Using data for 1988, the results show economies of scale to exist only for small and representative (middle quartile) banks in functionally integrated banking countries. Moreover, we investigate the potential for cost savings from combining traditional banking (lending) activities with non-banking financial activities. Evidence of economies of scope is found between lending and invesbnentltrading activities. Significant diseconomies of scope are found for combmations of real estate/msurance with investment banking activities. Country by country analysis is generally consistent w...
Journal of Behavioral and Experimental Finance, 2021
Abstract Central banks of Brazil, Chile, and Colombia in the late 1990s pledged transparency in t... more Abstract Central banks of Brazil, Chile, and Colombia in the late 1990s pledged transparency in their monetary policy decisions. Univariate tests show improvements in the forecasts of monetary policy actions in Brazil and Colombia but not in Chile. Multivariate tests examining the response of market interest rates to central bank announcements show transparency efforts lowered monetary policy news and macroeconomic news in Brazil and only partially in Chile and Colombia. Transparency efforts are effective when accuracy of forecasts improves and variability is reduced. Finally, both short- and long-term rates are shown to be impacted by monetary policy news and macroeconomic news.
The field of international business is dynamic, complex, and challenging, vulnerable to fast-brea... more The field of international business is dynamic, complex, and challenging, vulnerable to fast-breaking events such as economic shifts, political turmoil, and natural disasters. This concise and affordable textbook will help future international business executives acquire the skills to function effectively under these challenging conditions. "Basics of International Business" incorporates coverage of the ongoing turmoil in the world financial markets. It's designed to familiarize students with the external environments that affect international businesses, to show them how to recognize the processes in identifying potential foreign markets, and to help them understand the functional strategies that can be developed to succeed in this highly competitive environment. The text focuses on 'must-know' core concepts in international business. The concepts, theories, and techniques are organized around seven major topical areas: introduction and overview of international business; environmental variables of culture, politics, and economics; entry strategies for new markets and countries; international trade and foreign direct investments; integration of functional areas; specific functioning areas (marketing, finance, accounting, etc.); global outsourcing and its role in international operations. The text is filled with helpful charts, chapter summaries, exercises, and applied cases. A detailed instructor's manual including course outlines, classroom exercises, and a complete test bank is available to adopters on the MES website.
... This finding is associated with a greater employee identification and faster information proc... more ... This finding is associated with a greater employee identification and faster information processing. 292 MA Gurdon and A. Rai are correct. However, if capital-labor ratios decline or register nochange, this would reject one of the equilibrium conditions of their models. ...
Uploads
Papers by Anoop Rai