Does foreign ownership contribute to sounder banks in emerging markets?
Subtitle: the Latin American experience
By: Jennifer S. Crystal, B. Gerard Dages, and Linda S. Goldberg.
Contributors: Dages, B. Gerard.; Goldberg, Linda S.; Federal Reserve Bank of New York.
Series: Staff reports ;; no. 137; Staff reports (Federal Reserve Bank of New York : Online) ;; no. 137.
Publisher: Federal Reserve Bank of New York
Published: 2001
Place of publication: [New York, N.Y.]
Language: eng
Format: Electronic resource
Subjects: Banks and banking, Foreign -- Latin America.
Description: "Foreign bank entrants into emerging markets are usually thought to improve the condition and performance of acquired institutions, and more generally to enhance local financial stability.  We use bank-specific data for a range of Latin American countries since the mid-1990s to address elements of this claim.  Across the seven largest countries, we find that the financial strength ratings of local banks acquired by foreign entities generally show a slight improvement relative to their domestic counterparts.  Our more in-depth case studies of Chile, Colombia, and Argentina do not indicate striking differences in health between larger foreign and domestic retail-oriented banks (although state banks are noticeably weaker).  However, foreign banks often have higher average loan growth, higher average provisioning expense, and greater loss-absorption capacity.  These results suggest that foreign ownership may provide important positive influences on the stability and development of emerging market banking systems"--Federal Reserve Bank of New York web site.
Notes: Includes bibliographical references.
Title from PDF file as viewed on 2/28/2005.
Also available in print.
System requirements: Adobe Acrobat Reader.
Mode of access: World Wide Web.