This paper provides empirical evidence on the determinants of foreign activities of German banks. We use regionally disaggregated panel data for the years 1981-98 and distinguish foreign direct investment from total foreign assets of domestic banks, of their foreign branches and their...

The internationalisation of banking in the industrial countries of the West has picked up speed since the mid-sixties. The American banks in particular have since 1965 almost trebled the number of their foreign establishments, and German banks likewise have been increasing their business...