In recent years foreign bank participation has increased tremendously in Latin America. Some observers argue that foreign bank entry will benefit Latin American banking systems by reducing the volatility of loans and deposits and increasing efficiency. Others are concerned that foreign banks...

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 fifty percent of banking assets are now in foreign-controlled banks. In Asia, Africa, The Middle East, and...