Foreign Banks in Poor Countries: Theory and Evidence

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Publisher : INTERNATIONAL MONETARY FUND
ISBN 13 : 9781451862782
Total Pages : 50 pages
Book Rating : 4.8/5 (627 download)

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Book Synopsis Foreign Banks in Poor Countries: Theory and Evidence by : Thierry Tressel

Download or read book Foreign Banks in Poor Countries: Theory and Evidence written by Thierry Tressel and published by INTERNATIONAL MONETARY FUND. This book was released on 2006-01-01 with total page 50 pages. Available in PDF, EPUB and Kindle. Book excerpt: We study how foreign bank penetration affects financial sector development in poor countries. A theoretical model shows that when foreign banks are better at monitoring highend customers than domestic banks, their entry benefits those customers but may hurt other customers and worsen welfare. The model also predicts that credit to the private sector should be lower in countries with more foreign bank penetration. In the empirical section, we show that, in poor countries, a stronger foreign bank presence is robustly associated with less credit to the private sector both in cross-sectional and panel tests. In addition, in countries with more foreign bank penetration, credit growth is slower and there is less access to credit. We find no adverse effects of foreign bank presence in more advanced countries.

Foreign Bank Entry

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Author :
Publisher : World Bank Publications
ISBN 13 :
Total Pages : 46 pages
Book Rating : 4./5 ( download)

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Book Synopsis Foreign Bank Entry by :

Download or read book Foreign Bank Entry written by and published by World Bank Publications. This book was released on 2001 with total page 46 pages. Available in PDF, EPUB and Kindle. Book excerpt: Foreign banks are playing an increasingly large role in many developing countries, holding more than 50 percent of banking assets in several of these countries. But important issues about foreign bank entry continue to be debated.

Foreign Bank Participation and Crises in Developing Countries

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Publisher : World Bank Publications
ISBN 13 :
Total Pages : 43 pages
Book Rating : 4./5 ( download)

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Book Synopsis Foreign Bank Participation and Crises in Developing Countries by : Robert J. Cull

Download or read book Foreign Bank Participation and Crises in Developing Countries written by Robert J. Cull and published by World Bank Publications. This book was released on 2007 with total page 43 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper describes the recent trends in foreign bank ownership in developing countries, summarizes the existing evidence on the causes and implications of foreign bank presence, and reexamines the link between banking crises and foreign bank participation. Using data on the share of banking sector assets held by foreign banks in over 100 developing countries during 1995-2002, the results show that countries that experienced a banking crisis tended to have higher levels of foreign bank participation than those that did not. Furthermore, panel regressions indicate that foreign participation increased as a result of crises rather than prior to them. However, post-crisis increases in foreign participation did not coincide with increased credit to the private sector, perhaps because in many cases foreign banks acquired distressed banks.

Foreign Banks

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Author :
Publisher : International Monetary Fund
ISBN 13 : 1463931158
Total Pages : 40 pages
Book Rating : 4.4/5 (639 download)

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Book Synopsis Foreign Banks by : Mr.Stijn Claessens

Download or read book Foreign Banks written by Mr.Stijn Claessens and published by International Monetary Fund. This book was released on 2012-01-01 with total page 40 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper introduces a comprehensive database on bank ownership for 137 countries over 1995-2009, and reviews foreign bank behavior and impact. It documents substantial increases in foreign bank presence, with many more home and host countries. Current market shares of foreign banks average 20 percent in OECD countries and 50 percent elsewhere. Foreign banks have higher capital and more liquidity, but lower profitability than domestic banks do. Only in developing countries is foreign bank presence negatively related with domestic credit creation. During the global crisis foreign banks reduced credit more compared to domestic banks, except when they dominated the host banking systems.

Open Doors

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Publisher : Rowman & Littlefield
ISBN 13 : 9780815798132
Total Pages : 452 pages
Book Rating : 4.7/5 (981 download)

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Book Synopsis Open Doors by : Robert E. Litan

Download or read book Open Doors written by Robert E. Litan and published by Rowman & Littlefield. This book was released on 2004-05-13 with total page 452 pages. Available in PDF, EPUB and Kindle. Book excerpt: A Brookings Institution Press, the World Bank, and the International Monetary Fund publication The extensive reforms and liberalization of financial services in emerging markets worldwide call for cutting-edge strategies to capture the benefits of new investment opportunities. In Open Doors, a volume of papers from the third annual Financial Markets and Development conference, multidisciplinary financial sector experts analyze current economic and political trends and prescribe practical advice to the financial development community. The book addresses the key issues of concern regarding the emerging markets, including the trends, motivations, and scope of FDI in finance; policy options that will best capture the opportunities of foreign entry; and the role of foreign institutions in e-finance innovation. The authors focus on specific topics such as foreign participation in emerging market banking systems and securities industries, WTO policies and enforcement, the role of foreign banks, liberalization of insurance markets, the need for capital markets, and the policy, regulatory, and legal issues associated with e-finance. For policymakers and financial practitioners affected by the WTO's Financial Services Agreement, this timely book should be of particular interest. Contributors include Donald Mathieson (International Money Fund), Pierre Sauvé (Trade Directorate, OECD), George J. Vojta (formerly with Bankers Trust and Citibank), Harold D. Skipper (J. Mack Robinson College of Business, Georgia State University), Benn Steil (Council on Foreign Relations), Morris Goldstein and Edward M. Graham (Institute for International Economics), Nicolas Lardy (Brookings Institution), Phillip Turner (Bank of International Settlements), and Robert Ledig (Fried, Frank, Shriver & Jacobson).

Foreign Bank Entry

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Publisher :
ISBN 13 :
Total Pages : 41 pages
Book Rating : 4.:/5 (129 download)

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Book Synopsis Foreign Bank Entry by : George R. G. Clarke

Download or read book Foreign Bank Entry written by George R. G. Clarke and published by . This book was released on 2004 with total page 41 pages. Available in PDF, EPUB and Kindle. Book excerpt: Foreign banks are playing an increasingly large role in many developing countries, holding more than 50 percent of banking assets in several of these countries. But important issues about foreign bank entry continue to be debated.In recent years foreign bank participation has increased tremendously in several developing countries. In Argentina, Chile, the Czech Republic, Hungary, and Poland, for example, more than 50 percent of banking assets are now in foreign-controlled banks. In Asia, Africa, the Middle East, and the former Soviet Union the rate of entry by foreign banks has been slower, but the trend is similar.Although the number of countries welcoming foreign banks is growing, many questions about foreign bank entry are still being debated, including:ʼn What draws foreign banks to a country?ʼn Which banks expand abroad?ʼn What do foreign banks do once they arrive?ʼn How does the mode of a bank's entry - for example, as a branch of its parent or as an independent subsidiary company - affect its behavior?Clarke and his coauthors summarize current knowledge on these issues. In addition, since the existing literature focuses heavily on industrial countries, they put forth an agenda for further study of the effects of foreign bank entry in developing countries.This paper - a product of the Office of the Senior Vice President, Development Economics - is a background paper for World Development Report 2002: Institutions for Markets. The authors may be contacted at [email protected], [email protected], [email protected], or [email protected].

Foreign Banking in Developing Countries; Origin Matters

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Publisher :
ISBN 13 :
Total Pages : 25 pages
Book Rating : 4.:/5 (129 download)

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Book Synopsis Foreign Banking in Developing Countries; Origin Matters by : Neeltje van Horen

Download or read book Foreign Banking in Developing Countries; Origin Matters written by Neeltje van Horen and published by . This book was released on 2011 with total page 25 pages. Available in PDF, EPUB and Kindle. Book excerpt: Driven by globalization and increased financial integration, the last decade has seen many foreign banks entering developing countries. Although the majority of these banks are from high-income countries, recently banks from developing countries have followed suit. This paper looks at this phenomenon, by examining the differences and similarities between developing and high-income country foreign banks. Using a large dataset on banking sector FDI in developing countries, we find that 27 percent of all foreign banks in developing countries are owned by a bank from another developing country, while these banks hold 5 percent of the foreign assets. The importance of developing country foreign banks is much larger in low-income countries (both in number of banks and in terms of assets) and this type of foreign banking is strongly regionally concentrated. Although foreign bank entry by both developing country as well as high-income country banks seems to be driven by economic integration, common language and proximity, banks from developing countries are more likely to invest in small developing countries with weak institutions where high-income country banks are reluctant to go. This result seems to suggest that developing country banks have a competitive advantage dealing with countries with a weak institutional climate. Furthermore, our results indicate that developing country foreign banks have a higher interest margin and are less profitable than foreign banks from high-income countries.

IMF Working Papers

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Publisher :
ISBN 13 :
Total Pages : pages
Book Rating : 4.:/5 (842 download)

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Book Synopsis IMF Working Papers by : Thierry Tressel

Download or read book IMF Working Papers written by Thierry Tressel and published by . This book was released on 2006 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt:

Does Foreign Bank Penetration Reduce Access to Credit in Developing Countries?

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Publisher :
ISBN 13 :
Total Pages : 44 pages
Book Rating : 4.:/5 (318 download)

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Book Synopsis Does Foreign Bank Penetration Reduce Access to Credit in Developing Countries? by : George R. G. Clarke

Download or read book Does Foreign Bank Penetration Reduce Access to Credit in Developing Countries? written by George R. G. Clarke and published by . This book was released on 2001 with total page 44 pages. Available in PDF, EPUB and Kindle. Book excerpt: How does entry by foreign banks affect lending to small and medium-size anterprises in developing countries? Analysis of data from a large cross-country survey of enterprises finds that foreign bank entry benefits firms of all sizes, although it seems to benefit larger firms more.

The Impact of the Global Financial Crisis on Banking Globalization

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Author :
Publisher : International Monetary Fund
ISBN 13 : 149835856X
Total Pages : 50 pages
Book Rating : 4.4/5 (983 download)

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Book Synopsis The Impact of the Global Financial Crisis on Banking Globalization by : Mr.Stijn Claessens

Download or read book The Impact of the Global Financial Crisis on Banking Globalization written by Mr.Stijn Claessens and published by International Monetary Fund. This book was released on 2014-10-27 with total page 50 pages. Available in PDF, EPUB and Kindle. Book excerpt: Although cross-border bank lending has fallen sharply since the crisis, extending our bank ownership database from 1995-2009 up to 2013 shows only limited retrenchment in foreign bank presence. While banks from OECD countries reduced their foreign presence (but still represent 89% of foreign bank assets), those from emerging markets and developing countries expanded abroad and doubled their presence. Especially advanced countries hit by a systemic crisis reduced their presence abroad, with far flung and relatively small investments more likely to be sold. Poorer and slower growing countries host fewer banks today, while large investments less likely expanded. Conversely, faster host countries’ growth and closeness to potential investors meant more entry. Lending by foreign banks locally grew more than cross-border bank claims did for the same home-host country combination, and each was driven by different factors. Altogether, our evidence shows that global banking is not becoming more fragmented, but rather is going through some important structural transformations with a greater variety of players and a more regional focus.

How Foreign Participation and Market Concentration Impact Bank Spreads

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Publisher : World Bank Publications
ISBN 13 :
Total Pages : 33 pages
Book Rating : 4./5 ( download)

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Book Synopsis How Foreign Participation and Market Concentration Impact Bank Spreads by : Ashoka Mody

Download or read book How Foreign Participation and Market Concentration Impact Bank Spreads written by Ashoka Mody and published by World Bank Publications. This book was released on 2004 with total page 33 pages. Available in PDF, EPUB and Kindle. Book excerpt: Increasing foreign participation and high concentration levels characterize the recent evolution of banking sectors' market structures in developing countries. Martinez Peria and Mody analyze the impact of these factors on Latin American bank spreads during the late 1990s. Their results suggest that foreign banks were able to charge lower spreads relative to domestic banks. This was more so for de novo foreign banks than for those that entered through acquisitions. The overall level of foreign bank participation seemed to influence spreads indirectly, primarily through its effect on administrative costs. Bank concentration was positively and directly related to both higher spreads and costs. This paper--a product of Finance, Development Research Group--is part of a larger effort in the group to understand banking sector market structure changes in developing countries.

Being a Foreigner Among Domestic Banks

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Publisher : International Monetary Fund
ISBN 13 : 1451874189
Total Pages : 37 pages
Book Rating : 4.4/5 (518 download)

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Book Synopsis Being a Foreigner Among Domestic Banks by : Mr.Stijn Claessens

Download or read book Being a Foreigner Among Domestic Banks written by Mr.Stijn Claessens and published by International Monetary Fund. This book was released on 2009-12-01 with total page 37 pages. Available in PDF, EPUB and Kindle. Book excerpt: Studying a large number of banks in various countries between 1999 and 2006, we document that foreign banks perform better when from a high income country, when host country competition is limited, and when they are large and rely more on deposits for funding. Foreign banks' performance improves over time, possibly as they adapt, and is better when the home country is geographical or cultural (but not institutional) close to the host country. These findings show the importance of controlling for heterogeneity among foreign banks and help reconcile some contradictory results found in the literature on foreign banks' performance.

Banking on Poverty

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Publisher :
ISBN 13 :
Total Pages : 344 pages
Book Rating : 4.F/5 ( download)

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Book Synopsis Banking on Poverty by : Jill Torrie

Download or read book Banking on Poverty written by Jill Torrie and published by . This book was released on 1983 with total page 344 pages. Available in PDF, EPUB and Kindle. Book excerpt:

The Role of Foreign Banks in Developing Countries

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Publisher :
ISBN 13 :
Total Pages : 32 pages
Book Rating : 4.:/5 (247 download)

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Book Synopsis The Role of Foreign Banks in Developing Countries by : Joydeep Bhattacharya

Download or read book The Role of Foreign Banks in Developing Countries written by Joydeep Bhattacharya and published by . This book was released on 1994 with total page 32 pages. Available in PDF, EPUB and Kindle. Book excerpt:

International Commodity Prices and Domestic Bank Lending in Developing Countries

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Publisher : International Monetary Fund
ISBN 13 : 1484333527
Total Pages : 44 pages
Book Rating : 4.4/5 (843 download)

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Book Synopsis International Commodity Prices and Domestic Bank Lending in Developing Countries by : Isha Agrawal

Download or read book International Commodity Prices and Domestic Bank Lending in Developing Countries written by Isha Agrawal and published by International Monetary Fund. This book was released on 2017-12-14 with total page 44 pages. Available in PDF, EPUB and Kindle. Book excerpt: We study the role of the bank-lending channel in propagating fluctuations in commodity prices to credit aggregates and economic activity in developing countries. We use data on more than 1,600 banks from 78 developing countries to analyze the transmission of changes in international commodity prices to domestic bank lending. Identification relies on a bankspecific time-varying measure of bank sensitivity to changes in commodity prices, based on daily data on bank stock prices. We find that a fall in commodity prices reduces bank lending, although this effect is confined to low-income countries and driven by commodity price busts. Banks with relatively lower deposits and poor asset quality transmit commodity price changes to lending more aggressively, supporting the hypothesis that the overall credit response to commodity prices works also through the credit supply channel. Our results also show that there is no significant difference in the behavior of foreign and domestic banks in the transmission process, reflecting the regional footprint of foreign banks in developing countries.

Foreign Bank Participation and Crises in Developing Countries

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Publisher :
ISBN 13 :
Total Pages : pages
Book Rating : 4.:/5 (931 download)

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Book Synopsis Foreign Bank Participation and Crises in Developing Countries by : Robert Cull

Download or read book Foreign Bank Participation and Crises in Developing Countries written by Robert Cull and published by . This book was released on 2012 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper describes the recent trends in foreign bank ownership in developing countries, summarizes the existing evidence on the causes and implications of foreign bank presence, and reexamines the link between banking crises and foreign bank participation. Using data on the share of banking sector assets held by foreign banks in over 100 developing countries during 1995-2002, the results show that countries that experienced a banking crisis tended to have higher levels of foreign bank participation than those that did not. Furthermore, panel regressions indicate that foreign participation increased as a result of crises rather than prior to them. However, post-crisis increases in foreign participation did not coincide with increased credit to the private sector, perhaps because in many cases foreign banks acquired distressed banks.

The Mix of International Banks' Foreign Claims

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Publisher : World Bank Publications
ISBN 13 : 0051017172
Total Pages : 44 pages
Book Rating : 4.0/5 (51 download)

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Book Synopsis The Mix of International Banks' Foreign Claims by : Alicia García Herrero

Download or read book The Mix of International Banks' Foreign Claims written by Alicia García Herrero and published by World Bank Publications. This book was released on 2005 with total page 44 pages. Available in PDF, EPUB and Kindle. Book excerpt: Abstract: "The authors analyze the determinants and implications for financial stability of the mix of international banks' claims countries receive. In particular, they distinguish between local claims, extended by international banks through their affiliates in a host (or claim recipient) country, and cross-border claims, booked from outside the host country, typically from banks' headquarters in their home countries. Using data on U.S., Spanish, and Italian banks' foreign claims across countries, the authors find that the share of local foreign claims is primarily driven by the degree of "freedom" in the host banking sector and by business opportunities in the local market. Entry requirements, startup and informational costs associated with international banking also play a role, but their influence is less robust. Finally, they find that the mix of international bank claims has implications for financial stability, since foreign claim volatility is lower in countries that receive a larger share of local claims."--World Bank web site.