Normal view MARC view ISBD view

Foreign Banks in Poor Countries : Theory and Evidence

By:

Detragiache Enrica

Material type: Article

ArticleLanguage: ENG Series: ; 63Publication details: Oct 2008 0Edition: 5Description: 2123-2160 PpSubject(s):

Foreign Banks

DDC classification:

Online resources:

Click here to access online

Summary: We study how foreign bank penetration affects financial sector development in poor countries. A theoretical model shows that when domestic banks are better than foreign banks at monitoring soft information customers, foreign bank entry may hurt these customers and worsen welfare. The model also predicts that credit to the private sector should be lower in countries with more foreign bank penetration, and that foreign banks should have a less risky loan portfolio. In the empirical section, we test these predictions for a sample of lower income countries and find support for the theoretical model.

Tags from this library: No tags from this library for this title. Log in to add tags.

Average rating: 0.0 (0 votes)

Holdings
Item type	Current library	Call number	Status	Date due	Barcode
Articles	Main Library	Det (Browse shelf(Opens below))	Available		AR10405

Browsing Main Library shelves Close shelf browser (Hides shelf browser)

Previous	No cover image available	No cover image available	No cover image available	No cover image available	No cover image available	No cover image available	No cover image available	Next
Previous	DES Foundation Fortnight 2013 Mumbai Day 3 Video 4	Des/Raj Psychometric Tests	Des/Sah Role of Dynamic Capability and Information Technology in Customer Relationship Management : A Study of Indian Companies	Det Foreign Banks in Poor Countries : Theory and Evidence	DET Logical Thinking Process	Det/Gar Monte Carlo Method for Optimal Portfolios	Deu Building the Global Bank : An Interview with Jamie Dimon	Next

We study how foreign bank penetration affects financial sector development in poor countries. A theoretical model shows that when domestic banks are better than foreign banks at monitoring soft information customers, foreign bank entry may hurt these customers and worsen welfare. The model also predicts that credit to the private sector should be lower in countries with more foreign bank penetration, and that foreign banks should have a less risky loan portfolio. In the empirical section, we test these predictions for a sample of lower income countries and find support for the theoretical model.

There are no comments on this title.

to post a comment.