Global banks resume overseas expansion amid high interest rates and capital expansion

Global banks are expanding their overseas businesses again after reducing them in the wake of the financial crisis. Amid a highinterestrate environment and tighter regulations, capital has accumulated, and as digital financial technology has spread, crossborder expansion and mergers and acquisitions (M&A) are becoming active again. JPMorgan launched the digital retail bank Chase in Germany this year, following its launch in the UK. In Europe, the volume of crossborder bank M&A within the EU last year reached 17 billion euros, marking the highest level since the global financial crisis. Representative examples include France's BPCE acquiring Portugal's Novo Banco and Crédit Mutuel acquiring Germany's OLB. Britain's NatWest also reentered the U.S. market after receiving approval last month to establish a representative office in Connecticut. Banks' crossborder credit rose to $39.5 trillion in the first quarter of this year, up 11% from the same period last year. However, some analysts say that differences in national regulations and deposit protection systems still limit the pace of expansion.