How Does Foreign Entry Affect The Domestic Banking Market
DOWNLOAD
Download How Does Foreign Entry Affect The Domestic Banking Market PDF/ePub or read online books in Mobi eBooks. Click Download or Read Online button to get How Does Foreign Entry Affect The Domestic Banking Market book now. This website allows unlimited access to, at the time of writing, more than 1.5 million titles, including hundreds of thousands of titles in various foreign languages. If the content not found or just blank you must refresh this page
How Does Foreign Entry Affect The Domestic Banking Market
DOWNLOAD
Author : Stijn Claessens
language : en
Publisher: World Bank Publications
Release Date : 1998
How Does Foreign Entry Affect The Domestic Banking Market written by Stijn Claessens and has been published by World Bank Publications this book supported file pdf, txt, epub, kindle and other format this book has been release on 1998 with Banca internacional categories.
June 1998 Does the entry of foreign banks make domestic banks more competitive? This study shows that, in developing countries, increasing the number (even more than the share) of foreign banks reduces both profits and overhead expenses of domestic banks. Banking markets are becoming increasingly international through financial liberalization and general economic integration. Using bank-level data for 80 countries for 1988-95, Claessens, Demirgüç-Kunt, and Huizinga examine the extent of foreign ownership in national banking markets. They compare net interest margins, overhead, taxes paid, and profitability of foreign and domestic banks. The comparative functions of foreign banks and domestic banks is very different in developing and industrial countries, possibly because of a different customer base, different bank procedures, and different regulatory and tax regimes: * In developing countries foreign banks tend to have greater profits, higher interest margins, and higher tax payments than do domestic banks. * In industrial countries it is the domestic banks that have greater profits, higher interest margins, and higher tax payments. It is common to read, in the literature on foreign banking, that the entry of foreign banks can make national banking markets more competitive, thereby forcing domestic banks to operate more efficiently. Claessens, Demirgüç-Kunt, and Huizinga show that increasing the foreign share of bank ownership does indeed reduce profitability and overhead expenses in domestically owned banks-so the general effect of foreign bank entry may be positive. Interestingly, the number of foreign entrants matters more than their market share, suggesting that they affect local bank competition more on entry rather than after gaining a substantial market share. These effects hold even when controlling for the fact that foreign banks may be attracted to markets with certain characteristics, such as low banking costs. This paper-a joint product of the East Asia and Pacific Region and the Development Research Group-is part of a larger effort in the Bank to study the effects of increasing global integration of financial services. The authors may be contacted at cclaessens @worldbank.org, [email protected], or H.P. Huizinga@Kub. NL.
How Does Foreign Entry Affect The Domestic Banking Market
DOWNLOAD
Author : Asli Demirgüç-Kunt
language : en
Publisher:
Release Date : 2016
How Does Foreign Entry Affect The Domestic Banking Market written by Asli Demirgüç-Kunt and has been published by this book supported file pdf, txt, epub, kindle and other format this book has been release on 2016 with categories.
Does the entry of foreign banks make domestic banks more competitive? This study shows that, in developing countries, increasing the number (even more than the share) of foreign banks reduces both profits and overhead expenses of domestic banks.Banking markets are becoming increasingly international through financial liberalization and general economic integration.Using bank-level data for 80 countries for 1988-95, Claessens, Demirguc-Kunt, and Huizinga examine the extent of foreign ownership in national banking markets. They compare net interest margins, overhead, taxes paid, and profitability of foreign and domestic banks.The comparative functions of foreign banks and domestic banks is very different in developing and industrial countries, possibly because of a different customer base, different bank procedures, and different regulatory and tax regimes:deg; In developing countries foreign banks tend to have greater profits, higher interest margins, and higher tax payments than do domestic banks.deg; In industrial countries it is the domestic banks that have greater profits, higher interest margins, and higher tax payments.It is common to read, in the literature on foreign banking, that the entry of foreign banks can make national banking markets more competitive, thereby forcing domestic banks to operate more efficiently. Claessens, Demirguc-Kunt, and Huizinga show that increasing the foreign share of bank ownership does indeed reduce profitability and overhead expenses in domestically owned banks - so the general effect of foreign bank entry may be positive.Interestingly, the number of foreign entrants matters more than their market share, suggesting that they affect local bank competition more on entry rather than after gaining a substantial market share.These effects hold even when controlling for the fact that foreign banks may be attracted to markets with certain characteristics, such as low banking costs.This paper - a joint product of the East Asia and Pacific Region and the Development Research Group - is part of a larger effort in the Bank to study the effects of increasing global integration of financial services. The authors may be contacted at cclaessens @worldbank.org, [email protected], or [email protected].
Foreign Bank Entry
DOWNLOAD
Author :
language : en
Publisher: World Bank Publications
Release Date : 2001
Foreign Bank Entry written by and has been published by World Bank Publications this book supported file pdf, txt, epub, kindle and other format this book has been release on 2001 with Bank assets categories.
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.
How Foreign Participation And Market Concentration Impact Bank Spreads
DOWNLOAD
Author : Ashoka Mody
language : en
Publisher: World Bank Publications
Release Date : 2004
How Foreign Participation And Market Concentration Impact Bank Spreads written by Ashoka Mody and has been published by World Bank Publications this book supported file pdf, txt, epub, kindle and other format this book has been release on 2004 with Bancos extranjeros categories.
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.
Foreign Bank Entry Performance Of Domestic Banks And Sequence Of Financial Liberalization
DOWNLOAD
Author : Nihal Bayraktar
language : en
Publisher:
Release Date : 2016
Foreign Bank Entry Performance Of Domestic Banks And Sequence Of Financial Liberalization written by Nihal Bayraktar and has been published by this book supported file pdf, txt, epub, kindle and other format this book has been release on 2016 with categories.
The openness or internationalization of financial services is a complex issue because it is closely related to structural reforms in the domestic financial sector with some perceived implications for macroeconomic stability. Bayraktar and Wang investigate the impact of foreign bank entry on the performance of domestic banks and how this relationship is affected by the sequence of financial liberalization. Their data set is constructed from the BANKSCOPE database, including 30 industrial and developing countries, and covering the period from 1995 to 2002. The authors apply panel data regressions by pooling all countries together, and by grouping countries according to the sequence of their financial liberalization. One observation based on descriptive analysis is that the degree of openness to foreign bank entry varies a great deal, which is not correlated with average income levels or with GDP growth. Second, the sequence of financial liberalization matters for the performance of the domestic banking sector: After controlling for macroeconomic variables and grouping countries by their sequence of liberalization, foreign bank entry has significantly improved domestic bank competitiveness in countries that liberalized their stock market first. In these countries, both profit and cost indicators are negatively related to the share of foreign banks. Countries that liberalized their capital account first seem to have benefited less from foreign bank entry compared with the other two sets of countries.This paper - a product of the Poverty Reduction and Economic Management Division, World Bank Institute - is part of a larger effort in the institute to develop materials for capacity building on trade in financial services.
Foreign Banks
DOWNLOAD
Author : Mr.Stijn Claessens
language : en
Publisher: International Monetary Fund
Release Date : 2012-01-01
Foreign Banks written by Mr.Stijn Claessens and has been published by International Monetary Fund this book supported file pdf, txt, epub, kindle and other format this book has been release on 2012-01-01 with Business & Economics categories.
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.
The Impact Of Foreign Entry On The Thai Banking Sector Revisited
DOWNLOAD
Author :
language : en
Publisher:
Release Date : 2006
The Impact Of Foreign Entry On The Thai Banking Sector Revisited written by and has been published by this book supported file pdf, txt, epub, kindle and other format this book has been release on 2006 with Banks and banking categories.
This dissertation analyses foreign bank penetration in Thailand and its effects on value creation, the diffusion of financial innovations as well as lending and stability over the period 1997 to 2005 using quarterly and semi-annual data. By making a clear distinction between hybrid banks and foreign branches, the main findings with respect to the former are that the presence of hybrid banks appears to have (i) contested the position of domestic banks and improved the functioning of the domestic banking market, although it may not be unequivocally beneficial in terms of value creation, (ii) had a positive effect on the probability of adoption of financial innovations, with hybrid banks found to be early adopters, and (iii) had a beneficial effect on total loan growth, but seems to have affected the distribution of credit. The analyses show that the mode of entry and the organisational form matter as does the size of the foreign shareholding. The findings recommend that foreign equity participation in locally incorporated banks should be further liberalised, but concomitantly suggest a phased approach accompanied by careful supervision and regulation to avoid any adverse outcomes. These policy implications are useful for countries like Thailand who have to decide whether and how to open their markets further.
The Effects Of Foreign Bank Entry On Chinese Domestic Banking Sector
DOWNLOAD
Author : Min Han
language : en
Publisher:
Release Date : 2005
The Effects Of Foreign Bank Entry On Chinese Domestic Banking Sector written by Min Han and has been published by this book supported file pdf, txt, epub, kindle and other format this book has been release on 2005 with categories.
Foreign Bank Entry
DOWNLOAD
Author : George R. G. Clarke
language : en
Publisher:
Release Date : 2004
Foreign Bank Entry written by George R. G. Clarke and has been published by this book supported file pdf, txt, epub, kindle and other format this book has been release on 2004 with categories.
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].
Inherited Or Earned Performance Of Foreign Banks In Central And Eastern Europe
DOWNLOAD
Author : Ms.Emilia Magdalena Jurzyk
language : en
Publisher: International Monetary Fund
Release Date : 2010-01-01
Inherited Or Earned Performance Of Foreign Banks In Central And Eastern Europe written by Ms.Emilia Magdalena Jurzyk and has been published by International Monetary Fund this book supported file pdf, txt, epub, kindle and other format this book has been release on 2010-01-01 with Business & Economics categories.
Using a combination of propensity score matching and difference-in-difference techniques we investigate the impact of foreign bank ownership on the performance and market power of acquired banks operating in Central and Eastern Europe. This approach allows us to control for selection bias as larger but less profitable banks were more likely to be acquired by foreign investors. We show that during three years after the takeover, banks have become more profitable due to cost minimization and better risk management. They have additionally gained market share, because they passed their lower cost of funds to borrowers in terms of lower lending rates. Previous studies failed to pick up the improvements in performance of takeover banks, because they did not account for the performance of financial institutions before acquisitions.