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g and financial services.Thesis (2007), who studied data from the developed countries of the banking system and found that foreign banks to enter the country, the overall level of spreads, pre-tax profits, lower operating costs. There are several reasons for banks to engage in foreign lending (Rajan, 1998, Petersen and Rajan, 1994).For example, it can obviously increase the bank’s client base. In addition, entering new markets can offer the possibility for risk diversification.What’s more, in order to offer customer informational financial service, they can take the advantages of information which is derived from long-term relationship with client through following their international customers.In the previous researches, some studies have provided evidence that FDI in banking is related to the FDI between source and host country and the degree of bilateral trade.Therefore, the bank’s internalization is closely related to the non-financial firms’ internalization (Yamori, 1998; Williams, 1998; Brealey and Kaplanis, 1996; Grosse and Goldberg, 1991).Furthermore, presumably, the aim for banks engage in foreign entry is to add the bank’s profitability, which should be within an acceptable risk diversification goals and risk profile.In fact, source and host countries’ attitude towards risk and profitability have been found to be critical drivers for the decision to enter a foreign market. For example, it was found by Focarelli and Pozzolo that banks with preference to establish branches in countries were more likely to gain more profits, own the prospect of making local bank more efficiency and higher expected economic increase. Galindo et al. (2003) has find that unifying regulations and rules and converging towards the standards of international institution owns a positive influence on foreign bank penetration. To some extent, it lessens the operating cost in the host country.

To make the problem simple, this literature can assume that the foreign bank’s behavior is independent of the residence’s country of the foreign owner. However, there are anecdotal evidence figures out that developing country banks are more attractive than high-income country banks in the eyes of different countries (World Bank, 2006).This should be purely resulted from the difference in FDI linkages and trade.However, other factors also should have play a role. Banks in developing country know more clearly about working with challenging climates in investment. The better familiarity can offer you the ability to take more risks. In that way, banks in developing country should be more likely to venture in countries which has weak investment climate.So there exists substantial difference between high-income county and developing country foreign banks. In addition to the difference between factors that drive foreign bank entrance, there exist differ in other aspects between developed country and developing country. Profitability and efficiency is the most notably. It was found by Demirguc-Kunt and Huizinga (1999) that the bank’s profitability and efficiency are influenced by many factors, including macroeconomic conditions and the bank’s ownership. If foreign banks in high-income country and developing country make a distinction between their client base, countries and product mix they invest in, it is probable that there exist difference between their profitability and e本论文由英语论文网提供整理，提供论文代写，英语论文代写，代写论文，代写英语论文，代写留学生论文，代写英文论文，留学生论文代写相关核心关键词搜索。