Geography and business models of global banks

Since the 2007-09 Global Financial Crisis (GFC) financial geography research has witnessed a growing body of literature addressing the implications of the amplified power of the financial institutions and markets, or financialisation, on the economic systems. The literature on international financial centres (IFCs) has also regained momentum amid the increase in size and concentration of their service provisions witnessed in the last few decades. Globalization and technological advances have fostered locational financial deepening and the agglomeration, complexity, and network interconnectedness of IFCs and their embeddedness into worldwide production systems and wealth accumulation and distribution. This chapter provides empirical evidence on the geographical organization within foreign branches of US global banks. The focus is on examining how the activities conducted in these branches in 62 different countries contribute to defining the business model adopted in specific regions. The underlying premise is that analyzing business models based on geographical location enables for a more precise assessment of the relative risk exposure in each country.

This is an Accepted Manuscript of a book chapter published by Routledge in International Banking in Global Perspective on 4 Mar 2024, available online: http://www.routledge.com/9781032310602