A note on the determinants of foreign bank activity in London between 1980 and 1989

Abstract

This note examines the determinants of foreign bank activity in London, according to the country of origin of investing banks between 1980 and 1989. The results indicate that the size of the banking sector in the foreign country is positively correlated with that country's bank presence in London. Foreign bank presence is also likely to be greater among main trading partners and it also appears that foreign direct investment from European and non-US or Japanese sources has a positive impact on foreign bank presence from those countries.

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