Foreign Bank Participation in Developing Countries : What Do We Know about the Drivers and Consequences of This Phenomenon?
Foreign bank participation has increased steadily across developing countries since the mid-1990s. This paper documents this trend and surveys the existing literature to explore the drivers and consequences of this phenomenon, paying particular att...
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| Format: | Policy Research Working Paper |
| Language: | English |
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2012
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| Online Access: | http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20100809094056 http://hdl.handle.net/10986/3882 |
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okr-10986-3882 |
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oai_dc |
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Digital Repository |
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Foreign Institution |
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Digital Repositories |
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World Bank Open Knowledge Repository |
| collection |
World Bank |
| language |
English |
| topic |
ACCESS TO CREDIT ACCESS TO FINANCE ACCESS TO FINANCIAL SERVICES ADB BALANCE SHEETS BANK ACTIVITY BANK BEHAVIOR BANK BRANCHES BANK CLAIMS BANK COMPETITION BANK FINANCING BANK FOR INTERNATIONAL SETTLEMENTS BANK INTEREST MARGINS BANK LENDING BANK MERGERS BANK OF KOREA BANK OPERATIONS BANK ORIGIN BANK POLICY BANK REGULATION BANK SPREADS BANKING CRISIS BANKING INDUSTRY BANKING MARKET BANKING MARKETS BANKING SECTOR BANKING SECTOR EFFICIENCY BANKING SECTOR STABILITY BANKING SECTORS BANKING STABILITY BANKING SYSTEM BANKING SYSTEMS BARRIERS TO ENTRY BORROWER BORROWING COLLATERAL COMMERCIAL BANK COMMERCIAL BANKS CONSOLIDATION CORRUPTION COST REDUCTION CREDIT LEVELS CREDIT REPORTING CREDIT REPORTING AGENCY CREDIT REPORTING SYSTEM CREDITWORTHINESS CRISIS IN EMERGING MARKETS CROSS-COUNTRY EVIDENCE CROSS-COUNTRY STUDIES CURRENCY CURRENCY CRISIS DEBT DEPOSITS DEVELOPING COUNTRIES DEVELOPING ECONOMIES DEVELOPMENT BANKS DOMESTIC BANK DOMESTIC BANKING DOMESTIC BANKING MARKET DOMESTIC BANKING MARKETS DOMESTIC BANKS DOMESTIC FIRMS DOMESTIC INVESTMENT ECONOMIC GROWTH ECONOMIC OPPORTUNITIES ECONOMIC POLICY ECONOMIES OF SCALE EMERGING ECONOMIES EMERGING MARKET EMERGING MARKET ECONOMIES EMERGING MARKET FINANCE EMERGING MARKETS ENTRY BARRIERS FDI FEDERAL RESERVE FEDERAL RESERVE BANK FEDERAL RESERVE BANK OF BOSTON FEDERAL RESERVE BANK OF NEW YORK FINANCIAL COSTS FINANCIAL CRISES FINANCIAL CRISIS FINANCIAL DEPTH FINANCIAL GLOBALIZATION FINANCIAL HEALTH FINANCIAL INSTITUTIONS FINANCIAL INTEGRATION FINANCIAL INTERMEDIATION FINANCIAL LIBERALIZATION FINANCIAL MARKETS FINANCIAL REGULATION FINANCIAL SECTOR FINANCIAL SECTOR DEVELOPMENT FINANCIAL SECTORS FINANCIAL SERVICE FINANCIAL SERVICE PROVIDERS FINANCIAL SERVICES FINANCIAL STABILITY FINANCIAL SYSTEMS FIRM PERFORMANCE FOREIGN BANK FOREIGN BANK ENTRY FOREIGN BANK OPERATIONS FOREIGN BANK PARTICIPATION FOREIGN BANK PENETRATION FOREIGN BANKING PRESENCE FOREIGN BANKS FOREIGN DIRECT INVESTMENT FOREIGN ENTRY FOREIGN INVESTMENT FOREIGN INVESTORS FOREIGN MARKETS FOREIGN OWNERSHIP FOREIGN PARTICIPATION FOREIGN PENETRATION GLOBAL ECONOMY GLOBALIZATION GOVERNMENT BANKS GROWTH RATE GROWTH RATES HOME COUNTRIES HOME COUNTRY HOST COUNTRIES HOST COUNTRY INFORMATION ON BORROWERS INFORMATIONAL ASYMMETRY INTEREST INCOME INTEREST RATES INTERNATIONAL BANK INTERNATIONAL DEVELOPMENT JUDICIAL EFFICIENCY LEGAL FRAMEWORK LEGISLATION LENDER LENDING DECISIONS LENDING POLICIES LEVY LIABILITY LIQUIDITY LOAN LOCAL BANKS LONG-TERM LENDING LOW-INCOME COUNTRIES MANUFACTURING FIRMS MARKET CONCENTRATION MARKET FINANCE MARKET STRUCTURE MULTINATIONAL MULTINATIONAL BANKS MULTINATIONALS MUNICIPALITIES NEGATIVE SHOCKS NEW MARKET NEW MARKETS NON-PERFORMING LOANS OPAQUE SMALL BUSINESSES OPERATING COSTS OUTREACH OVERHEAD COSTS OWNERSHIP STRUCTURE PARTICULAR COUNTRIES PERSONNEL EXPENSES PORTFOLIOS PRIVATE CREDIT PRIVATE SECTOR PRIVATE SECTOR DEVELOPMENT PRIVATIZATION PROFIT OPPORTUNITIES PROFITABILITY PROVISION OF CREDIT REAL ESTATE REAL ESTATE LOANS REGULATORY RESTRICTIONS RESERVES RETURN RETURN ON ASSETS RULE OF LAW SHARE OF ASSETS SHARE OF BANK ASSETS SMALL BUSINESSES SMALL ENTERPRISE SMALL ENTERPRISE FINANCE SMALL FIRMS SMES STOCK MARKETS STRATEGIC INVESTORS SUBSIDIARIES TRANSITION COUNTRIES TRANSITION ECONOMIES VOLATILITY WORLD FINANCIAL MARKETS |
| spellingShingle |
ACCESS TO CREDIT ACCESS TO FINANCE ACCESS TO FINANCIAL SERVICES ADB BALANCE SHEETS BANK ACTIVITY BANK BEHAVIOR BANK BRANCHES BANK CLAIMS BANK COMPETITION BANK FINANCING BANK FOR INTERNATIONAL SETTLEMENTS BANK INTEREST MARGINS BANK LENDING BANK MERGERS BANK OF KOREA BANK OPERATIONS BANK ORIGIN BANK POLICY BANK REGULATION BANK SPREADS BANKING CRISIS BANKING INDUSTRY BANKING MARKET BANKING MARKETS BANKING SECTOR BANKING SECTOR EFFICIENCY BANKING SECTOR STABILITY BANKING SECTORS BANKING STABILITY BANKING SYSTEM BANKING SYSTEMS BARRIERS TO ENTRY BORROWER BORROWING COLLATERAL COMMERCIAL BANK COMMERCIAL BANKS CONSOLIDATION CORRUPTION COST REDUCTION CREDIT LEVELS CREDIT REPORTING CREDIT REPORTING AGENCY CREDIT REPORTING SYSTEM CREDITWORTHINESS CRISIS IN EMERGING MARKETS CROSS-COUNTRY EVIDENCE CROSS-COUNTRY STUDIES CURRENCY CURRENCY CRISIS DEBT DEPOSITS DEVELOPING COUNTRIES DEVELOPING ECONOMIES DEVELOPMENT BANKS DOMESTIC BANK DOMESTIC BANKING DOMESTIC BANKING MARKET DOMESTIC BANKING MARKETS DOMESTIC BANKS DOMESTIC FIRMS DOMESTIC INVESTMENT ECONOMIC GROWTH ECONOMIC OPPORTUNITIES ECONOMIC POLICY ECONOMIES OF SCALE EMERGING ECONOMIES EMERGING MARKET EMERGING MARKET ECONOMIES EMERGING MARKET FINANCE EMERGING MARKETS ENTRY BARRIERS FDI FEDERAL RESERVE FEDERAL RESERVE BANK FEDERAL RESERVE BANK OF BOSTON FEDERAL RESERVE BANK OF NEW YORK FINANCIAL COSTS FINANCIAL CRISES FINANCIAL CRISIS FINANCIAL DEPTH FINANCIAL GLOBALIZATION FINANCIAL HEALTH FINANCIAL INSTITUTIONS FINANCIAL INTEGRATION FINANCIAL INTERMEDIATION FINANCIAL LIBERALIZATION FINANCIAL MARKETS FINANCIAL REGULATION FINANCIAL SECTOR FINANCIAL SECTOR DEVELOPMENT FINANCIAL SECTORS FINANCIAL SERVICE FINANCIAL SERVICE PROVIDERS FINANCIAL SERVICES FINANCIAL STABILITY FINANCIAL SYSTEMS FIRM PERFORMANCE FOREIGN BANK FOREIGN BANK ENTRY FOREIGN BANK OPERATIONS FOREIGN BANK PARTICIPATION FOREIGN BANK PENETRATION FOREIGN BANKING PRESENCE FOREIGN BANKS FOREIGN DIRECT INVESTMENT FOREIGN ENTRY FOREIGN INVESTMENT FOREIGN INVESTORS FOREIGN MARKETS FOREIGN OWNERSHIP FOREIGN PARTICIPATION FOREIGN PENETRATION GLOBAL ECONOMY GLOBALIZATION GOVERNMENT BANKS GROWTH RATE GROWTH RATES HOME COUNTRIES HOME COUNTRY HOST COUNTRIES HOST COUNTRY INFORMATION ON BORROWERS INFORMATIONAL ASYMMETRY INTEREST INCOME INTEREST RATES INTERNATIONAL BANK INTERNATIONAL DEVELOPMENT JUDICIAL EFFICIENCY LEGAL FRAMEWORK LEGISLATION LENDER LENDING DECISIONS LENDING POLICIES LEVY LIABILITY LIQUIDITY LOAN LOCAL BANKS LONG-TERM LENDING LOW-INCOME COUNTRIES MANUFACTURING FIRMS MARKET CONCENTRATION MARKET FINANCE MARKET STRUCTURE MULTINATIONAL MULTINATIONAL BANKS MULTINATIONALS MUNICIPALITIES NEGATIVE SHOCKS NEW MARKET NEW MARKETS NON-PERFORMING LOANS OPAQUE SMALL BUSINESSES OPERATING COSTS OUTREACH OVERHEAD COSTS OWNERSHIP STRUCTURE PARTICULAR COUNTRIES PERSONNEL EXPENSES PORTFOLIOS PRIVATE CREDIT PRIVATE SECTOR PRIVATE SECTOR DEVELOPMENT PRIVATIZATION PROFIT OPPORTUNITIES PROFITABILITY PROVISION OF CREDIT REAL ESTATE REAL ESTATE LOANS REGULATORY RESTRICTIONS RESERVES RETURN RETURN ON ASSETS RULE OF LAW SHARE OF ASSETS SHARE OF BANK ASSETS SMALL BUSINESSES SMALL ENTERPRISE SMALL ENTERPRISE FINANCE SMALL FIRMS SMES STOCK MARKETS STRATEGIC INVESTORS SUBSIDIARIES TRANSITION COUNTRIES TRANSITION ECONOMIES VOLATILITY WORLD FINANCIAL MARKETS Cull, Robert Martinez Peria, Maria Soledad Foreign Bank Participation in Developing Countries : What Do We Know about the Drivers and Consequences of This Phenomenon? |
| geographic_facet |
The World Region The World Region |
| relation |
Policy Research working paper ; no. WPS 5398 |
| description |
Foreign bank participation has increased
steadily across developing countries since the mid-1990s.
This paper documents this trend and surveys the existing
literature to explore the drivers and consequences of this
phenomenon, paying particular attention to the differences
observed across regions both in the degree of foreign bank
participation and in the impact of this process. Local
profit opportunities, the absence of barriers to entry, and
the presence of mechanisms to mitigate information problems
have been the main factors driving foreign bank entry across
developing countries. In general, foreign bank participation
has been shown to exert a positive influence on banking
sector efficiency and competition. The weight of the
evidence suggests that foreign bank presence does not
endanger, but rather enhances banking sector stability. And
although some case studies suggest that foreign bank entry
limits access to finance, many cross-country studies offer
evidence to the contrary. |
| format |
Publications & Research :: Policy Research Working Paper |
| author |
Cull, Robert Martinez Peria, Maria Soledad |
| author_facet |
Cull, Robert Martinez Peria, Maria Soledad |
| author_sort |
Cull, Robert |
| title |
Foreign Bank Participation in Developing Countries : What Do We Know about the Drivers and Consequences of This Phenomenon? |
| title_short |
Foreign Bank Participation in Developing Countries : What Do We Know about the Drivers and Consequences of This Phenomenon? |
| title_full |
Foreign Bank Participation in Developing Countries : What Do We Know about the Drivers and Consequences of This Phenomenon? |
| title_fullStr |
Foreign Bank Participation in Developing Countries : What Do We Know about the Drivers and Consequences of This Phenomenon? |
| title_full_unstemmed |
Foreign Bank Participation in Developing Countries : What Do We Know about the Drivers and Consequences of This Phenomenon? |
| title_sort |
foreign bank participation in developing countries : what do we know about the drivers and consequences of this phenomenon? |
| publishDate |
2012 |
| url |
http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20100809094056 http://hdl.handle.net/10986/3882 |
| _version_ |
1764388822083174400 |
| spelling |
okr-10986-38822021-04-23T14:02:13Z Foreign Bank Participation in Developing Countries : What Do We Know about the Drivers and Consequences of This Phenomenon? Cull, Robert Martinez Peria, Maria Soledad ACCESS TO CREDIT ACCESS TO FINANCE ACCESS TO FINANCIAL SERVICES ADB BALANCE SHEETS BANK ACTIVITY BANK BEHAVIOR BANK BRANCHES BANK CLAIMS BANK COMPETITION BANK FINANCING BANK FOR INTERNATIONAL SETTLEMENTS BANK INTEREST MARGINS BANK LENDING BANK MERGERS BANK OF KOREA BANK OPERATIONS BANK ORIGIN BANK POLICY BANK REGULATION BANK SPREADS BANKING CRISIS BANKING INDUSTRY BANKING MARKET BANKING MARKETS BANKING SECTOR BANKING SECTOR EFFICIENCY BANKING SECTOR STABILITY BANKING SECTORS BANKING STABILITY BANKING SYSTEM BANKING SYSTEMS BARRIERS TO ENTRY BORROWER BORROWING COLLATERAL COMMERCIAL BANK COMMERCIAL BANKS CONSOLIDATION CORRUPTION COST REDUCTION CREDIT LEVELS CREDIT REPORTING CREDIT REPORTING AGENCY CREDIT REPORTING SYSTEM CREDITWORTHINESS CRISIS IN EMERGING MARKETS CROSS-COUNTRY EVIDENCE CROSS-COUNTRY STUDIES CURRENCY CURRENCY CRISIS DEBT DEPOSITS DEVELOPING COUNTRIES DEVELOPING ECONOMIES DEVELOPMENT BANKS DOMESTIC BANK DOMESTIC BANKING DOMESTIC BANKING MARKET DOMESTIC BANKING MARKETS DOMESTIC BANKS DOMESTIC FIRMS DOMESTIC INVESTMENT ECONOMIC GROWTH ECONOMIC OPPORTUNITIES ECONOMIC POLICY ECONOMIES OF SCALE EMERGING ECONOMIES EMERGING MARKET EMERGING MARKET ECONOMIES EMERGING MARKET FINANCE EMERGING MARKETS ENTRY BARRIERS FDI FEDERAL RESERVE FEDERAL RESERVE BANK FEDERAL RESERVE BANK OF BOSTON FEDERAL RESERVE BANK OF NEW YORK FINANCIAL COSTS FINANCIAL CRISES FINANCIAL CRISIS FINANCIAL DEPTH FINANCIAL GLOBALIZATION FINANCIAL HEALTH FINANCIAL INSTITUTIONS FINANCIAL INTEGRATION FINANCIAL INTERMEDIATION FINANCIAL LIBERALIZATION FINANCIAL MARKETS FINANCIAL REGULATION FINANCIAL SECTOR FINANCIAL SECTOR DEVELOPMENT FINANCIAL SECTORS FINANCIAL SERVICE FINANCIAL SERVICE PROVIDERS FINANCIAL SERVICES FINANCIAL STABILITY FINANCIAL SYSTEMS FIRM PERFORMANCE FOREIGN BANK FOREIGN BANK ENTRY FOREIGN BANK OPERATIONS FOREIGN BANK PARTICIPATION FOREIGN BANK PENETRATION FOREIGN BANKING PRESENCE FOREIGN BANKS FOREIGN DIRECT INVESTMENT FOREIGN ENTRY FOREIGN INVESTMENT FOREIGN INVESTORS FOREIGN MARKETS FOREIGN OWNERSHIP FOREIGN PARTICIPATION FOREIGN PENETRATION GLOBAL ECONOMY GLOBALIZATION GOVERNMENT BANKS GROWTH RATE GROWTH RATES HOME COUNTRIES HOME COUNTRY HOST COUNTRIES HOST COUNTRY INFORMATION ON BORROWERS INFORMATIONAL ASYMMETRY INTEREST INCOME INTEREST RATES INTERNATIONAL BANK INTERNATIONAL DEVELOPMENT JUDICIAL EFFICIENCY LEGAL FRAMEWORK LEGISLATION LENDER LENDING DECISIONS LENDING POLICIES LEVY LIABILITY LIQUIDITY LOAN LOCAL BANKS LONG-TERM LENDING LOW-INCOME COUNTRIES MANUFACTURING FIRMS MARKET CONCENTRATION MARKET FINANCE MARKET STRUCTURE MULTINATIONAL MULTINATIONAL BANKS MULTINATIONALS MUNICIPALITIES NEGATIVE SHOCKS NEW MARKET NEW MARKETS NON-PERFORMING LOANS OPAQUE SMALL BUSINESSES OPERATING COSTS OUTREACH OVERHEAD COSTS OWNERSHIP STRUCTURE PARTICULAR COUNTRIES PERSONNEL EXPENSES PORTFOLIOS PRIVATE CREDIT PRIVATE SECTOR PRIVATE SECTOR DEVELOPMENT PRIVATIZATION PROFIT OPPORTUNITIES PROFITABILITY PROVISION OF CREDIT REAL ESTATE REAL ESTATE LOANS REGULATORY RESTRICTIONS RESERVES RETURN RETURN ON ASSETS RULE OF LAW SHARE OF ASSETS SHARE OF BANK ASSETS SMALL BUSINESSES SMALL ENTERPRISE SMALL ENTERPRISE FINANCE SMALL FIRMS SMES STOCK MARKETS STRATEGIC INVESTORS SUBSIDIARIES TRANSITION COUNTRIES TRANSITION ECONOMIES VOLATILITY WORLD FINANCIAL MARKETS Foreign bank participation has increased steadily across developing countries since the mid-1990s. This paper documents this trend and surveys the existing literature to explore the drivers and consequences of this phenomenon, paying particular attention to the differences observed across regions both in the degree of foreign bank participation and in the impact of this process. Local profit opportunities, the absence of barriers to entry, and the presence of mechanisms to mitigate information problems have been the main factors driving foreign bank entry across developing countries. In general, foreign bank participation has been shown to exert a positive influence on banking sector efficiency and competition. The weight of the evidence suggests that foreign bank presence does not endanger, but rather enhances banking sector stability. And although some case studies suggest that foreign bank entry limits access to finance, many cross-country studies offer evidence to the contrary. 2012-03-19T18:41:29Z 2012-03-19T18:41:29Z 2010-08-01 http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20100809094056 http://hdl.handle.net/10986/3882 English Policy Research working paper ; no. WPS 5398 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank Publications & Research :: Policy Research Working Paper The World Region The World Region |