Productivity drives banks’ international efforts

bundesbank

A productivity pecking order drives bank internationalisation, new research from the Bundesbank reveals.

The analysis finds that, as it is the case for the manufacturing sector, more productive banks are more likely to enter foreign markets. The research shows that complex and more costly modes of international activity require greater productivity, so more productive banks tend to engage more internationally than do less productive banks, as well as hold higher international assets.

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