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It is a well known quandry that when countries open their financial sectors, foreign-owned banks appear to bring superior efficiency to their host markets but also charge higher markups on borrowed funds than their domestically owned rivals, with unknown impacts on interest rates and welfare....
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Patterns in cross-border banking have changed since the global financial crisis. This may affect domestic bank market … modes of cross-border banking impact bank concentration. I use a two- country general equilibrium model with heterogeneous … banking sector on bank market structures. The model suggests that both cross-border lending and bank FDI mitigate …
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When countries open their financial sectors, foreign-owned banks appear to bring superior efficiency to their host markets but also charge higher markups on borrowed funds than their domestically owned rivals, with unknown impacts on interest rates and welfare. Using heterogeneous, imperfectly...
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We study how differences in bank regulation influence cross-border bank acquisition flows and the share price reactions … positive and larger when acquirers come from more restrictive bank regulatory environments. We interpret this evidence as more …
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The nexus between ownership and competition in the banking sector is a major concern to policymakers around the world … but one that is rarely comprehensively examined. For 131 countries and 13 years we match bank ownership with over 50 …,000 bank-year estimates of individual bank market power. We find that ownership does not explain market power at the individual …
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