The Theories of the International Expansion of Bank and the Performance of Foreign –Owned Bank in New Zealand

s2758329, s2762895, s2773847, s2784238Diamond, E., Dong, G., Huang, Y. & Lin, B.Due: 5th April 2012Tutor: Sonja Kobinger

There are various categories of banking; these include retail banking, directly dealing with small businesses and persons. Commercial and Corporate banking which offers services to medium and large businesses (Koch & MacDonald 2010). Private banking, deals with individuals, offering them one on one service. The last category is investment banking. These help clients to raise capital and often invest in financial markets. Most global banking institutions provide all these services combined. With all these institutions in existence within the same localities and offering similar services, there is a need to regulate the industry so as to protect the consumer and provide fair working environment for all banks (Du & Girma, 2011).

During the twenty years it was in place the First Bank did change the economic downturn of the country after the war. The First Bank had branches in eight influential port cities and had a wide geographic existence. It influenced the lending policies of the state banks’ lending practices. The First Bank was like the state banks in that it made business loans, accepted deposits, and issued notes that circulated as currency and were convertible into gold or silver. But it differed from the state banks because its

One of the primary factors that can be attributed as to have led the recent financial crisis is the financial deregulation allowing financial institutions a lot of freedom in the way they operated. The manifestation of this was seen in the form of:

The Australian financial system evolved in five stages. The first stage was the introduction of financial institutions during the early colonial period in the 19th Century, where the influence of British institutions was a key driving force. The end of that period was marked by the 1890s depression which saw a major rationalisation of Australia’s financial institutions. The start of the modern era of financial regulation can be traced back to the introduction of banking legislation in 1945 and the establishment of Australia’s first central bank.

1. Introduction In New Zealand, banks was established to serve the finacial need of people in the period of be settled by European. Nowadays, New Zealand is one of the most competitive and flexible banking industries in the world because of environment and banks’ strategic capabilities. In this assigment, the broad macro-environment that influences banking industry will be analysed through PESTEL framework and Porter’s five forces. There are large banks in New Zealand such as ANZ bank, BNZ bank, and Kiwibank; however, just Kiwibank are deeply analysed in this assignment. Moreover, through Porter’s five forces, there are identification and discussion of the relative importance for Kiwibank. Furthermore, the analysis of Kiwibank’s strategic

Deregulation is believed to be one of the major factors that led to the 2008 Financial Crisis. Deregulation refers to the reduction of governmental influence in an industry in order to create more competition (“Deregulation”, 2015). The reduction in government influence creates a more competitive market that

Commonwealth Bank of Australia is one of the most popular multinational banks in Australia and New Zealand. It has its businesses in Asia, Fiji, New Zealand, the United Kingdom and the United States (Commbank.com.au, 2017). The main financial services of this bank include funds management, retail

M K T G 1 0 0 0 1   –   P r i n c i p l e s   o f   M a r k e t i n g                                               P a g e  4     Introduction   In  order  to  break  into  the  banking  industry  and  establish  ourselves  as  the  regional  bank  of  Victoria,   we  are  going  to  enter  the  market  in  its  currently

The CBA is Australia’s largest retail bank and offers clients a choice of goods and services.

Australia has a strong, profitable, sophisticated and well regulated banking sector which is welcoming of new entrants and increasingly engaged in regional and global markets.

Lately, the international financial integration has increased. Over the years, the world economy has witnessed an increase in the number of individuals and businesses using international banking services. In today’s competitive global economy banks have the option to solely service their home market, to export services to foreign markets, or to establish a presence in that market. Essentially, banks have two options of expanding their operations in foreign markets. They can either service foreign clients through their domestic offices or they can establish a presence in the foreign markets. In general, the reasons for bank internationalization in

The balance of payment for New Zealand is separated into three distinct sections. The sections include the current account, capital account, and financial account. Each section plays an important role in determining if the balance of account for a country is positive or negative. To analyze what New Zealand’s balance of payment means to them, each section will be reviewed in detail below.

Private banking industry has changed in a very basic way, driven by many key factors such as: free competition systems, modern developments in information technology (in particular, developments of the internet), and changing demographics. Private banks now operate in an environment shaped by increasing and shifting regulations, and in markets influenced by the uncontrolled situations of the world economy and geopolitical issues.

The study of foreign bank entry effect towards domestic banking in Malaysia in term of long term loan is an important tool to evaluate the difference between foreign bank and domestic bank in Malaysia. Other than that, it is also important to determine management planning and strategic analysis. Banks contribute to economic growth, so if the bank performance is outstanding, the overall economy will be strong. There are few studies have discussed the similar topic. Therefore, some of the articles are selected as a references.