FOREIGN OWNERSHIP AND COST EFFICIENCY IN U.S. MULTINATIONAL BANKING

This study provides a comparison of cost efficiency between foreign‐owned multinational banks operating in the U.S. and U.S.‐owned multinational banks in their production of banking services from 1984 to 1989. The results indicate that foreign‐owned multinational banks operating in the U.S. did not have comparative cost advantage over U.S.‐owned multinational banks.