This study examines the role of foreign banks in Latin America and Asia, focusing particularly on the effects of foreign banks on the stability of the financial sector.First, using data on the presence of foreign banks via branching as well as subsidiaries, the study shows that the presence of...

The current crisis has led to an unprecedented collapse in international capital flows, with substantial heterogeneity across regions. Asian economies were relatively unaffected, despite having been the center of the storm in the crisis of the late 1990s. The contraction in capital flows for...