The paper aims at acknowledging the efficiency effects of bank privatization upon the entry of strategic foreign investor. Thus, a broad experience from the developing countries is reviewed. General conclusion is that the foreign capital infusion improves the profit and cost efficiency of the...

This paper studies the impact of mortgages on consumer debt and on debt on durable goods. We first present a stylized model in which an outstanding debt, representing mortgages, affects positively consumer debt, and debt on durable goods. The model is empirically tested for the U.S. using PSID...

A striking feature of many financial crises is the collapse of exports relative to output. In the 2008 financial crisis, real world exports plunged 17 percent while GDP fell 5 percent. This paper examines whether the drying up of trade finance can help explain the large drops in exports relative...

We study the macroeconomic effects of rational asset bubbles in an overlapping-generations economy where asset trading requires specialized intermediaries and where agents freely choose between working in the production or in the financial sector. Frictions in the market for deposits create...

We examine the effect of U.S. branch banking deregulations on the entry size of new firms, using micro-data from the U.S. Census Bureau. We find that the average entry size for startups did not change following the deregulations. However, among firms that survived at least four years, a greater...

When granting credit, banks depend on reliable information about the creditworthiness and risk structure of potential borrowers. This information is typically gathered by national credit bureaus. Nationally established banks depend on information from credit bureaus more than ever, particularly...

This study investigates the impact of foreign bank penetration in Central and Eastern Europe on firm entry. We demonstrate that the acquisition of domestic banks by foreign investors has led to reduced firm creation, smaller average size of entrants and increased firm exit in opaque industries...

This paper analyses the relation between competition and concentration in the banking sector. The empirical answer is given by testing a monopolistic competition model of bank branching behaviour on individual bank data at county level (départements and provinces) in France and Italy. We...

What are the drivers of productivity surplus distribution to microfinance stakeholders? This paper shows that the size of the institution is the main indicator that can explain the gain in productivity surplus but also the surplus given to clients (decrease of interest rates) and staff....

In this paper, we make an analysis of productivity’s gaps in WAEMU’s banks; the intra-organizational strategy is privileged. For that purpose, we study the progression of the global factors productivity using the Data Envelopment Analysis (DEA), and then the X efficiency scores are...