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Does foreign ownership contribute to sounder banks in emerging markets? the Latin American experience
| Content Provider | Library of Congress - Books/Printed Material |
|---|---|
| Author | Crystal, Jennifer S. Dages, B. Gerard |
| Spatial Coverage | Latin America |
| Temporal Coverage | 2001 |
| Abstract | "Foreign bank entrants into emerging markets are usually thought to improve the condition and performance of acquired institutions, and more generally to enhance local financial stability. We use bank-specific data for a range of Latin American countries since the mid-1990s to address elements of this claim. Across the seven largest countries, we find that the financial strength ratings of local banks acquired by foreign entities generally show a slight improvement relative to their domestic counterparts. Our more in-depth case studies of Chile, Colombia, and Argentina do not indicate striking differences in health between larger foreign and domestic retail-oriented banks (although state banks are noticeably weaker). However, foreign banks often have higher average loan growth, higher average provisioning expense, and greater loss-absorption capacity. These results suggest that foreign ownership may provide important positive influences on the stability and development of emerging market banking systems"--Federal Reserve Bank of New York web site. |
| Language | English |
| Publisher | Federal Reserve Bank of New York, |
| Publisher Place | New York, N.Y. |
| Part of Series | Catalog |
| Requires | HTML5 supported browser |
| Access Restriction | Open |
| Subject Keyword | Foreign Banks and Banking Latin America |
| Subject Domain (in LCSH) | Banks and banking, Foreign--Latin America |
| Subject Domain (in LCC) | HB1 |
| Content Type | Text |
| Resource Type | Book |
