ABSTRACT
Robert Z. Aliber's paper is a very helpful contribution towards gaining an understanding of the behaviour of the banking industry, especially with respect to penetrating foreign markets. His some stylized facts are very helpful towards an understanding of the unique structure of the banking industry. Aliber's first argument for a bank to go abroad is to accompany its customers who, themselves, are going international. It is certainly crucial in understanding banking structure and behaviour, to approve Aliber's second feature, that regulation of the banking industry is more extensive than that in the rest of business. Aliber's argument that banking necessitates proximity has certainly lost validity over time. He analyses whether economic factors or barriers to entry prohibit foreign banks entering national markets. The basic thrust is that, in many cases in retail banking, economic factors are the main obstacle to foreign penetration of national markets.
