Foreign Bank Lending: The Role of Home Country Culture During Prosperous and Crisis Periods

IESEG Working Paper Series 2021-ACF-01

47 Pages Posted: 5 May 2021

See all articles by Krzysztof Jackowicz

Krzysztof Jackowicz

affiliation not provided to SSRN

Oskar Kowalewski

IESEG School of Management; LEM - CNRS 9221

Łukasz Kozłowski

Kozminski University

Date Written: April 28, 2021

Abstract

We investigated whether home country culture determines the lending behavior of foreign subsidiaries in host countries during both tranquil and difficult economic times. We employed a dataset of foreign-owned banks originating from 49 home countries and operating in 47 host countries during the period 1996–2018. We found that, in general, only certain dimensions of the home country culture of multinational banks influence lending activities of the foreign bank subsidiaries. However, the impact of home country culture strengthens significantly during crises. Interestingly, we established that the cultural values of the home country are more important than the cultural distances between home and host countries in explaining foreign bank lending attitudes.

Keywords: foreign bank, lending, national culture, crisis

JEL Classification: G01, G21

Suggested Citation

Jackowicz, Krzysztof and Kowalewski, Oskar and Kozłowski, Łukasz, Foreign Bank Lending: The Role of Home Country Culture During Prosperous and Crisis Periods (April 28, 2021). IESEG Working Paper Series 2021-ACF-01, Available at SSRN: https://ssrn.com/abstract=3835894 or http://dx.doi.org/10.2139/ssrn.3835894

Krzysztof Jackowicz

affiliation not provided to SSRN

No Address Available

Oskar Kowalewski (Contact Author)

IESEG School of Management ( email )

1 Parvis de La Défense
Socle de la Grande Arche
Paris La Défense cedex, 92044
France

HOME PAGE: http://www.ieseg.fr/en/faculty-and-research/professor/?id=1740

LEM - CNRS 9221 ( email )

Lille
France

HOME PAGE: http://lem.cnrs.fr/

Łukasz Kozłowski

Kozminski University ( email )

ul. Jagiellońska 57/59
Warsaw, Mazowieckie 03-301
Poland

HOME PAGE: http://www.kozminski.edu.pl

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