Banking in Emerging Economies

The determinants for the internationalization of banking are based on country characteristics and market dynamics and bank-specific advantages. Primarily the country characteristics consist of barriers to entry to provide services, the type of activities allowed and the type of investment allowed, as well as, regulations on capital flows and taxation and repatriation of profits, or indeed, tax benefits offered by a government to attract foreign banks to invest directly to encourage spill-over effects in the industry. The size of the market for banking products and specifically the product markets that are targeted and the potential growth of these are other factors. In terms of the foreign financial market dynamics the potential performance and profitability depends on the interaction and rivalry among existing banks in the market, the number of these their nationality and their size distribution, that is whether it a concentrated oligopolistic market with a few large banks and some other smaller banks, or it is a highly fragmented market. Different product markets and customer segments, that is, individual or corporate customers, may have different levels of rivalry and margins and hence profitability is different for each type. The more a bank has distinctive competencies the more that they may be transferred abroad. By definition when they have distinctive there must be some competitive advantage for the bank. The decision to enter an emerging economy by a multinational bank is a very important one, as many factors need to be considered. You are required to consider the following Raw Banking Data with 280 factors and thr following 24 countries in four continents for this project.

  1. Algeria
  2. Argentina
  3. Brazil
  4. Bulgaria
  5. China
  6. Czech Republic
  7. Estonia
  8. Georgia
  9. Hungary
  10. India
  11. Latvia
  12. Lithuania
  13. Mexic
  14. Morocco
  15. Poland
  16. Romania
  17. Russia
  18. Slovakia
  19. Slovenia
  20. South Africa
  21. Tunisia
  22. Turkey
  23. Ukraine
  24. Vietnam

You are required to consider the following (Raw Banking Data) with 280 factors and 24 countries in four continents for this project. Organize your 280 factors into opportunities (strengths) and threats (weaknesses) reasonably or by using Internet resources for questionable factors.  Also, clean up the data and watch for duplicates. You are then required to do all necessary calculations in excel for the Euclid model.  Your Euclid model and the CSV file used in the Euclid program must produce similar results.  While the Euclid numbers are precise, you may experience up to ± 0.02 rounding differences in the average opportunity and the average threat scores between Excel and Euclid due to Excel rounding. This may also result in a small variation among the final rankings of the countries in Excel and Euclid. The Excel file must include a complete scatter chart for the Euclid model.  This includes all data labels, ideal point, nadir point, coordinates, average partition lines, and the four quadrants. The spreadsheet must also include the Euclidean distances and rankings with reference to the ideal point. All formulas must be preserved in the spreadsheet.  Finally, your spreadsheet must include a radar chart and a world heatmap of the Euclidean distances for the 24 countries considered in your study.  Please refer to Get started with 3D Maps (maps.pdf) for this requirement.

Additional Resources:

Useful Links:

NationMaster - World Statistics
World Factbook - Central Intelligence Agency
Library of Congress - Country Studies
World Bank - World Development Indicators
Transparency International

Organization for Economic Co-operation and Development
Organization for Economic Co-operation and Development: Better Life Index

Decision Models:

pdf Multi-Criteria Decision Making (MCDM) (Problem) Excel MCDM (Solutions)

pdf André and Angelique: Buying Their Dream Home (Problem) Excel Problem CSV CSV File

pdf André and Angelique: Buying Their Dream Home (Solution) Excel Solution

pdf McDonald’s Corporation Location Planning (Problem) Excel Problem

pdf Labeling Points on a Euclid Scatter Chart

pdf Fixing the #VALUE! Error Messages in your Euclid Spreadsheet

pdf Get started with Excel 3D Maps

Useful Papers:

Final Report Outline:

  • Cover Page
  • Executive Summary
  • Introduction and Problem description
  • Proposed method (include step-by-step description)
  • Results (include Euclidean distance and overall rankings, scatter chart with four quadrants, radar chart, world heath map, etc.)
  • Recommendations and conclusions
  • References
  • Appendices

Sample Consulting Reports:

pdf McKinsey-2017

pdf McKinsey-2018

pdf McKinsey-2020

Final Report Submission:

Submit your WORD, EXCEL, and CSV files via the following E-mail: