Economic determinates, financial crisis and entry modes of foreign banks into emerging markets

In the last two decades, foreign banks have significantly expanded their presence in several emerging markets. The expansion of foreign banks has continued despite the global financial crisis. In the study we establish the role of economic factors and their relevance in driving a bank's expansion decision into emerging markets. The results confirm that the economic factors influencing the location choice of banks vary with respect to the economic condition of the home and host countries. Moreover, the results show that these factors may influence a foreign bank's choice of organizational structure in emerging markets. (C) 2010 Elsevier B.V. All rights reserved.