When a large bank begins to expand its activities abroad it usually starts with shell branches and full-service banking offices due to the limited initial capital requirements and customer needs for a basic menu of conventional banking services; then, if business warrants, international departments and Edge Act subsidiaries typically will be organized by the bank.

Question

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When a large bank begins to expand its activities abroad, it often starts with representative offices or international departments, which require less capital and are easier to establish. Shell branches and full-service banking offices, along with Edge Act subsidiaries, usually come at later stages of international expansion when the bank is ready to offer a more comprehensive range of services and has assessed the market potential.

When a Large Bank Begins to Expand Its Activities Abroad