Globalization of banking services: Canada’s strategies in the Triad
In this chapter we develop a framework to examine the operations and strategies of the Canadian banks when entering or expanding in a foreign market. We draw on Casson’s definitional framework (1989) of a multi national bank. This definitional framework permits a distinction between those banks which engage in international banking activities but have none or only marginal physical assets abroad and those banks which engage in some international banking functions as a subset of their overall activity but which also own and operate at least one banking operation in a foreign country. The latter set of banks we refer to as MNBs. For example, a Japanese bank buying foreign securities in the USA or lending to a Third World government may be engaged in international banking but is not necessarily an MNB unless it owns operations in the foreign country. In this chapter we explore current banking activities in Canada and set banking strategies against competitors based in the USA, Japan and the European Community (EC). This leads to possible strategic directions that Canadian MNBs may take in the near future in these triad areas.