Foreign Bank Participation in Developing Countries : What Do We Know about the Drivers and Consequences of This Phenomenon?

Cull, Robert; Martinez Peria, Maria Soledad

dc.creator	Cull, Robert
dc.creator	Martinez Peria, Maria Soledad
dc.date	2012-03-19T18:41:29Z
dc.date	2012-03-19T18:41:29Z
dc.date	2010-08-01
dc.date.accessioned	2023-02-17T21:05:15Z
dc.date.available	2023-02-17T21:05:15Z
dc.identifier	http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20100809094056
dc.identifier	http://hdl.handle.net/10986/3882
dc.identifier.uri	http://localhost:8080/xmlui/handle/CUHPOERS/244846
dc.description	Foreign bank participation has increased steadily across developing countries since the mid-1990s. This paper documents this trend and surveys the existing literature to explore the drivers and consequences of this phenomenon, paying particular attention to the differences observed across regions both in the degree of foreign bank participation and in the impact of this process. Local profit opportunities, the absence of barriers to entry, and the presence of mechanisms to mitigate information problems have been the main factors driving foreign bank entry across developing countries. In general, foreign bank participation has been shown to exert a positive influence on banking sector efficiency and competition. The weight of the evidence suggests that foreign bank presence does not endanger, but rather enhances banking sector stability. And although some case studies suggest that foreign bank entry limits access to finance, many cross-country studies offer evidence to the contrary.
dc.language	English
dc.relation	Policy Research working paper ; no. WPS 5398
dc.rights	CC BY 3.0 IGO
dc.rights	http://creativecommons.org/licenses/by/3.0/igo/
dc.rights	World Bank
dc.subject	ACCESS TO CREDIT
dc.subject	ACCESS TO FINANCE
dc.subject	ACCESS TO FINANCIAL SERVICES
dc.subject	ADB
dc.subject	BALANCE SHEETS
dc.subject	BANK ACTIVITY
dc.subject	BANK BEHAVIOR
dc.subject	BANK BRANCHES
dc.subject	BANK CLAIMS
dc.subject	BANK COMPETITION
dc.subject	BANK FINANCING
dc.subject	BANK FOR INTERNATIONAL SETTLEMENTS
dc.subject	BANK INTEREST MARGINS
dc.subject	BANK LENDING
dc.subject	BANK MERGERS
dc.subject	BANK OF KOREA
dc.subject	BANK OPERATIONS
dc.subject	BANK ORIGIN
dc.subject	BANK POLICY
dc.subject	BANK REGULATION
dc.subject	BANK SPREADS
dc.subject	BANKING CRISIS
dc.subject	BANKING INDUSTRY
dc.subject	BANKING MARKET
dc.subject	BANKING MARKETS
dc.subject	BANKING SECTOR
dc.subject	BANKING SECTOR EFFICIENCY
dc.subject	BANKING SECTOR STABILITY
dc.subject	BANKING SECTORS
dc.subject	BANKING STABILITY
dc.subject	BANKING SYSTEM
dc.subject	BANKING SYSTEMS
dc.subject	BARRIERS TO ENTRY
dc.subject	BORROWER
dc.subject	BORROWING
dc.subject	COLLATERAL
dc.subject	COMMERCIAL BANK
dc.subject	COMMERCIAL BANKS
dc.subject	CONSOLIDATION
dc.subject	CORRUPTION
dc.subject	COST REDUCTION
dc.subject	CREDIT LEVELS
dc.subject	CREDIT REPORTING
dc.subject	CREDIT REPORTING AGENCY
dc.subject	CREDIT REPORTING SYSTEM
dc.subject	CREDITWORTHINESS
dc.subject	CRISIS IN EMERGING MARKETS
dc.subject	CROSS-COUNTRY EVIDENCE
dc.subject	CROSS-COUNTRY STUDIES
dc.subject	CURRENCY
dc.subject	CURRENCY CRISIS
dc.subject	DEBT
dc.subject	DEPOSITS
dc.subject	DEVELOPING COUNTRIES
dc.subject	DEVELOPING ECONOMIES
dc.subject	DEVELOPMENT BANKS
dc.subject	DOMESTIC BANK
dc.subject	DOMESTIC BANKING
dc.subject	DOMESTIC BANKING MARKET
dc.subject	DOMESTIC BANKING MARKETS
dc.subject	DOMESTIC BANKS
dc.subject	DOMESTIC FIRMS
dc.subject	DOMESTIC INVESTMENT
dc.subject	ECONOMIC GROWTH
dc.subject	ECONOMIC OPPORTUNITIES
dc.subject	ECONOMIC POLICY
dc.subject	ECONOMIES OF SCALE
dc.subject	EMERGING ECONOMIES
dc.subject	EMERGING MARKET
dc.subject	EMERGING MARKET ECONOMIES
dc.subject	EMERGING MARKET FINANCE
dc.subject	EMERGING MARKETS
dc.subject	ENTRY BARRIERS
dc.subject	FDI
dc.subject	FEDERAL RESERVE
dc.subject	FEDERAL RESERVE BANK
dc.subject	FEDERAL RESERVE BANK OF BOSTON
dc.subject	FEDERAL RESERVE BANK OF NEW YORK
dc.subject	FINANCIAL COSTS
dc.subject	FINANCIAL CRISES
dc.subject	FINANCIAL CRISIS
dc.subject	FINANCIAL DEPTH
dc.subject	FINANCIAL GLOBALIZATION
dc.subject	FINANCIAL HEALTH
dc.subject	FINANCIAL INSTITUTIONS
dc.subject	FINANCIAL INTEGRATION
dc.subject	FINANCIAL INTERMEDIATION
dc.subject	FINANCIAL LIBERALIZATION
dc.subject	FINANCIAL MARKETS
dc.subject	FINANCIAL REGULATION
dc.subject	FINANCIAL SECTOR
dc.subject	FINANCIAL SECTOR DEVELOPMENT
dc.subject	FINANCIAL SECTORS
dc.subject	FINANCIAL SERVICE
dc.subject	FINANCIAL SERVICE PROVIDERS
dc.subject	FINANCIAL SERVICES
dc.subject	FINANCIAL STABILITY
dc.subject	FINANCIAL SYSTEMS
dc.subject	FIRM PERFORMANCE
dc.subject	FOREIGN BANK
dc.subject	FOREIGN BANK ENTRY
dc.subject	FOREIGN BANK OPERATIONS
dc.subject	FOREIGN BANK PARTICIPATION
dc.subject	FOREIGN BANK PENETRATION
dc.subject	FOREIGN BANKING PRESENCE
dc.subject	FOREIGN BANKS
dc.subject	FOREIGN DIRECT INVESTMENT
dc.subject	FOREIGN ENTRY
dc.subject	FOREIGN INVESTMENT
dc.subject	FOREIGN INVESTORS
dc.subject	FOREIGN MARKETS
dc.subject	FOREIGN OWNERSHIP
dc.subject	FOREIGN PARTICIPATION
dc.subject	FOREIGN PENETRATION
dc.subject	GLOBAL ECONOMY
dc.subject	GLOBALIZATION
dc.subject	GOVERNMENT BANKS
dc.subject	GROWTH RATE
dc.subject	GROWTH RATES
dc.subject	HOME COUNTRIES
dc.subject	HOME COUNTRY
dc.subject	HOST COUNTRIES
dc.subject	HOST COUNTRY
dc.subject	INFORMATION ON BORROWERS
dc.subject	INFORMATIONAL ASYMMETRY
dc.subject	INTEREST INCOME
dc.subject	INTEREST RATES
dc.subject	INTERNATIONAL BANK
dc.subject	INTERNATIONAL DEVELOPMENT
dc.subject	JUDICIAL EFFICIENCY
dc.subject	LEGAL FRAMEWORK
dc.subject	LEGISLATION
dc.subject	LENDER
dc.subject	LENDING DECISIONS
dc.subject	LENDING POLICIES
dc.subject	LEVY
dc.subject	LIABILITY
dc.subject	LIQUIDITY
dc.subject	LOAN
dc.subject	LOCAL BANKS
dc.subject	LONG-TERM LENDING
dc.subject	LOW-INCOME COUNTRIES
dc.subject	MANUFACTURING FIRMS
dc.subject	MARKET CONCENTRATION
dc.subject	MARKET FINANCE
dc.subject	MARKET STRUCTURE
dc.subject	MULTINATIONAL
dc.subject	MULTINATIONAL BANKS
dc.subject	MULTINATIONALS
dc.subject	MUNICIPALITIES
dc.subject	NEGATIVE SHOCKS
dc.subject	NEW MARKET
dc.subject	NEW MARKETS
dc.subject	NON-PERFORMING LOANS
dc.subject	OPAQUE SMALL BUSINESSES
dc.subject	OPERATING COSTS
dc.subject	OUTREACH
dc.subject	OVERHEAD COSTS
dc.subject	OWNERSHIP STRUCTURE
dc.subject	PARTICULAR COUNTRIES
dc.subject	PERSONNEL EXPENSES
dc.subject	PORTFOLIOS
dc.subject	PRIVATE CREDIT
dc.subject	PRIVATE SECTOR
dc.subject	PRIVATE SECTOR DEVELOPMENT
dc.subject	PRIVATIZATION
dc.subject	PROFIT OPPORTUNITIES
dc.subject	PROFITABILITY
dc.subject	PROVISION OF CREDIT
dc.subject	REAL ESTATE
dc.subject	REAL ESTATE LOANS
dc.subject	REGULATORY RESTRICTIONS
dc.subject	RESERVES
dc.subject	RETURN
dc.subject	RETURN ON ASSETS
dc.subject	RULE OF LAW
dc.subject	SHARE OF ASSETS
dc.subject	SHARE OF BANK ASSETS
dc.subject	SMALL BUSINESSES
dc.subject	SMALL ENTERPRISE
dc.subject	SMALL ENTERPRISE FINANCE
dc.subject	SMALL FIRMS
dc.subject	SMES
dc.subject	STOCK MARKETS
dc.subject	STRATEGIC INVESTORS
dc.subject	SUBSIDIARIES
dc.subject	TRANSITION COUNTRIES
dc.subject	TRANSITION ECONOMIES
dc.subject	VOLATILITY
dc.subject	WORLD FINANCIAL MARKETS
dc.title	Foreign Bank Participation in Developing Countries : What Do We Know about the Drivers and Consequences of This Phenomenon?
dc.type	Publications & Research :: Policy Research Working Paper
dc.coverage	The World Region
dc.coverage	The World Region