The Dynamics of Foreign Bank Ownership : Evidence from Hungary
The early start of the process of bank restructuring and privatization in Hungary provides a longer and richer amount of evidence than that available for any other transition economy. The authors analyze the dynamics of bank restructuring in Hungar...
| Main Authors: | , , |
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| Format: | Policy Research Working Paper |
| Language: | English en_US |
| Published: |
World Bank, Washington, DC
2014
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| Subjects: | |
| Online Access: | http://documents.worldbank.org/curated/en/2003/08/2494639/dynamics-foreign-bank-ownership-evidence-hungary http://hdl.handle.net/10986/18123 |
| Summary: | The early start of the process of bank
restructuring and privatization in Hungary provides a longer
and richer amount of evidence than that available for any
other transition economy. The authors analyze the dynamics
of bank restructuring in Hungary with a focus on the role
played by foreign ownership. They explore the performance
over time of foreign-owned Hungarian banks and study the
extent to which efficiency gains are affected by the chosen
acquisition strategy-strategic acquisition in contrast with
investment in a newly established bank (greenfield
investment)-or by the management style adopted after the
acquisition. The authors supplement previous results on the
effects of foreign bank ownership in three ways. First, they
explicitly consider the time span required for the change of
ownership to affect bank performance. Second, the authors
explore how important the chosen acquisition strategy is for
the success of an acquisition. And third, they study how
relevant the adopted management style is to this end, as
proxied by the degree of reliance on foreign management. |
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