Banking Internationalization: the Choice between Greenfield Investment and Cross-border MAs

摘要

Based on the positive relationship between mternationalization degree and banking competitiveness, this paper argues that China's banking may promote banking internationalization so as to improve competitiveness. It describes the most recent cases of China's banking internationalization,then employs the Cobb-Douglas production function to give the operation models of greenfield investment and cross-border mergers & acquisitions (M&As), provides a framework of the internationalization path choice for banking, suggests that the potential maximum profit of greenfield investment and cross-border M&As is the determinant to make decision during the banking's oversea expansion. The conclusion may derive implications for China's banking operation when they implementthe internationalization strategy.