Banks and the World’s Major Banking Centers, 1990.

Adrian E. Tschoegl, Wharton School of the University of Pennsylvania
Sang-Rim Choi, Hanyang University
Dae-kun Park, Hanyang University

Abstract

We update an earlier article on the determinants of interpenetration of financial centers by banks. By examining presence we focus on the institutional dimension of interpenetration and complement work on the magnitude of foreign banks’ presence. By adding the year 1990 to the analyses for 1970 and 1980 in we can achieve both replication and the opportunity to what the changes that have occurred between 1980 and 1990 tell us about financial centres, international banks and banking. First, aggregate interconnectedness has hardly increased between 1980 and 1990. Second, despite “the end of geography” thesis, the representation of banks in the leading centres has not dissipated though the numbers are no longer growing as rapidly as in the 1970s. Third, a number of explicit or implicit agreements between banks from different countries not to compete in each other’s markets appear to be waning.