The Relative Profitability of International Banking Activities

The World of Banking, Vol. 3, No, 3, pp. 25-27, May-June 1984

Robert H. Smith School Research Paper No. RHS 2615361

4 Pages Posted: 7 Jun 2015 Last revised: 29 Dec 2015

John A. Haslem

University of Maryland - Robert H. Smith School of Business

Andreas Christofi

Monmouth University - Department of Economics, Finance, and Real Estate

James Bedingfield

University of Maryland - Robert H. Smith School of Business

Anthony Stagliano

University of Maryland

Date Written: September 2, 2015

Abstract

The conclusions of study are summarized as follows: (1) Banks manage some asset-related international banking activities (especially loans but also cash) less consistently and uniformly than liability-related and other international banking activities. (2) The identified category of international loan assets is significantly less profitable than its domestic counterpart. (3) The results of the study are generally consistent for each of the three years analyzed.

The apparent mismatch in the international aspects of the statement of condition (conclusion 1) may be due to differences in gap management, involving variable-rate assets and variable-rate liabilities. Conclusion 3 suggests general longitudinal consistency in the behavior of factors that account for most of the variability in management of international banking activities. For example, this result appears consistent with continuing repayment problems facing large banks in their loans in developing countries.

Suggested Citation

Haslem, John A. and Christofi, Andreas and Bedingfield, James and Stagliano, Anthony, The Relative Profitability of International Banking Activities (September 2, 2015). The World of Banking, Vol. 3, No, 3, pp. 25-27, May-June 1984; Robert H. Smith School Research Paper No. RHS 2615361. Available at SSRN: https://ssrn.com/abstract=2615361

John A. Haslem (Contact Author)

University of Maryland - Robert H. Smith School of Business ( email )

College Park, MD 20742
United States
202-387 2025 (Phone)

Andreas Christofi

Monmouth University - Department of Economics, Finance, and Real Estate ( email )

West Long Branch, NJ 07764
United States
7322635540 (Phone)
7322635516 (Fax)

James Bedingfield

University of Maryland - Robert H. Smith School of Business ( email )

College Park, MD 20742-1815
United States

Anthony Stagliano

University of Maryland ( email )

College Park
College Park, MD 20742
United States

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