Foreign Banks in Poor Countries : Theory and Evidence /

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 mo...

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Bibliografiska uppgifter
Huvudupphovsman: Detragiache, Enrica
Övriga upphovsmän: Gupta, Poonam, Tressel, Thierry
Materialtyp: Tidskrift
Språk:English
Publicerad: Washington, D.C. : International Monetary Fund, 2006.
Serie:IMF Working Papers; Working Paper ; No. 2006/018
Länkar:Full text available on IMF
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245 1 0 |a Foreign Banks in Poor Countries :   |b Theory and Evidence /  |c Enrica Detragiache, Poonam Gupta, Thierry Tressel. 
264 1 |a Washington, D.C. :  |b International Monetary Fund,  |c 2006. 
300 |a 1 online resource (50 pages) 
490 1 |a IMF Working Papers 
500 |a <strong>Off-Campus Access:</strong> No User ID or Password Required 
500 |a <strong>On-Campus Access:</strong> No User ID or Password Required 
506 |a Electronic access restricted to authorized BRAC University faculty, staff and students 
520 3 |a 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. 
538 |a Mode of access: Internet 
700 1 |a Gupta, Poonam. 
700 1 |a Tressel, Thierry. 
830 0 |a IMF Working Papers; Working Paper ;  |v No. 2006/018 
856 4 0 |z Full text available on IMF  |u http://elibrary.imf.org/view/journals/001/2006/018/001.2006.issue-018-en.xml  |z IMF e-Library