1.

Record Nr.

UNINA9910959027003321

Autore

Detragiache Enrica

Titolo

Foreign Banks in Poor Countries : : Theory and Evidence / / Enrica Detragiache, Poonam Gupta, Thierry Tressel

Pubbl/distr/stampa

Washington, D.C. : , : International Monetary Fund, , 2006

ISBN

9786613827739

9781462350827

1462350828

9781451990379

1451990375

9781283515283

1283515288

9781451908145

1451908148

Edizione

[1st ed.]

Descrizione fisica

1 online resource (50 p.)

Collana

IMF Working Papers

Altri autori (Persone)

GuptaPoonam

TresselThierry

Soggetti

Banks and banking, Foreign - Developing countries

Banks and banking - Developing countries

Bank credit

Banking

Banks and Banking

Banks and banking

Banks and banking, Foreign

Banks

Commercial banks

Corporate Finance and Governance

Credit

Depository Institutions

Economic Development: Financial Markets

Finance

Finance: General

Financial institutions

Financial Markets and the Macroeconomy

Financial markets

Financial sector development

Financial services industry

Foreign banks



Micro Finance Institutions

Monetary economics

Monetary Policy, Central Banking, and the Supply of Money and Credit: General

Money and Monetary Policy

Money

Mortgages

Saving and Capital Investment

United States

Lingua di pubblicazione

Inglese

Formato

Materiale a stampa

Livello bibliografico

Monografia

Note generali

"January 2006."

Nota di bibliografia

Includes bibliographical references.

Nota di contenuto

""Contents""; ""I. INTRODUCTION""; ""II. EMPIRICAL EVIDENCE ON FOREIGN BANKS IN POOR COUNTRIES""; ""III. CREAM-SKIMMING EFFECTS OF FOREIGN BANK ENTRY: THEORY""; ""IV. THE EMPIRICAL TEST: METHODOLOGY AND DATA""; ""V. RESULTS FROM THE EMPIRICAL TESTS""; ""VI. CONCLUSIONS""; ""Appendix I. Welfare Comparison under Alternative Equilibria""; ""Appendix II. Data Definitions, Sources, and Summary Statistics for Lower- Income Countries""; ""References""

Sommario/riassunto

We study how foreign bank penetration affects financial sector development in poor countries. A theoretical model shows that when foreign banks are better at monitoring highend customers than domestic banks, their entry benefits those customers but may hurt other customers and worsen welfare. The model also predicts that credit to the private sector should be lower in countries with more foreign bank penetration. In the empirical section, we show that, in poor countries, a stronger foreign bank presence is robustly associated with less credit to the private sector both in cross-sectional and panel tests. In addition, in countries with more foreign bank penetration, credit growth is slower and there is less access to credit. We find no adverse effects of foreign bank presence in more advanced countries.