One striking development in the banking sector over the past two decades is the significant increase in banking foreign direct investment. Multinational banks are now major players in the global financial system in terms of their asset positions, loan amounts, and operational scales. Despite this significant trend, few empirical studies exist explaining observed international trends. This dissertation investigates three aspects of banking foreign direct investment. The first essay investigates the factors determining a bank's decision to invest abroad. The second essay investigates the factors determining foreign and domestic banks' risk-taking behavior. The last essay explores the impact of foreign banks' presence on the host country's economy.