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This paper provides a critical assessment of the costs and benefits of foreign bank ownership. It reviews the extensive literature on the impact of foreign banks and uses a unique database on bank ownership, covering 129 countries, to (re-)examine a number of the issues discussed. It documents...
Persistent link: https://www.econbiz.de/10010607614
This paper develops and tests a theoretical model that allows for the endogenous decision of banks to engage in international and global banking. International banking, where banks raise capital in the home market and lend it abroad, is driven by differences in factor endowments across...
Persistent link: https://www.econbiz.de/10009644843
Using a new, comprehensive database on bank ownership, identifying also the home country of foreign banks, for 137 countries over the period 1995-2009, this paper provides an overview of foreign bank activity and its impact of financial development and stability. We document substantial...
Persistent link: https://www.econbiz.de/10009390614
Familiarity with working in a specific institutional environment compared to its competitors can provide a firm with a competitive advantage, making it invest in specific host countries. We examine whether this notion of institutional competitive advantage drives banks to seek out specific...
Persistent link: https://www.econbiz.de/10005106662
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...
Persistent link: https://www.econbiz.de/10011167034
. Studying the performance of foreign banks relative to domestic banks in a large number of countries between 1999 and 2006, we … large and rely more on deposits for funding. Foreign banks improve their performance over time, possibly as they adapt to …' performance. These findings show that it is important to control for heterogeneity among foreign banks when studying their …
Persistent link: https://www.econbiz.de/10008480963
that primacy eventually hurts growth performance. Since it is tough to interpret cross-country growth regressions, we …
Persistent link: https://www.econbiz.de/10005030208
the structure-conduct-performance paradigm while academics prefer price mark-ups (Lerner index) or correlations of input …
Persistent link: https://www.econbiz.de/10005101793
This paper investigates the benefits of banks' direct investment in foreign subsidiaries and branches for non-financial multinationals. The paper builds on the literature on international banks which has primarily focused on the implications for host countries, rather than for its international...
Persistent link: https://www.econbiz.de/10009144150
We use data on the 48 largest multinational banking groups to compare the lending of their 199 foreign subsidiaries during the Great Recession with lending by a benchmark group of 202 domestic banks. Contrary to earlier, more contained crises, parent banks were not a significant source of...
Persistent link: https://www.econbiz.de/10009385894