Foreign Bank Entry : Experience, Implications for Developing Countries, and Agenda for Further Research
In recent years, foreign bank participation has increased tremendously in several developing countries. In Argentina, Chile, the Czech Republic, Hungary and Poland, for example, more than fifty percent of banking assets are now in foreign-controlle...
| 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/2001/10/1615100/foreign-bank-entry-experience-implications-developing-countries-agenda-further-research http://hdl.handle.net/10986/19504 |
| Summary: | In recent years, foreign bank
participation has increased tremendously in several
developing countries. In Argentina, Chile, the Czech
Republic, Hungary and Poland, for example, more than fifty
percent of banking assets are now in foreign-controlled
banks. In Asia, Africa, The Middle East, and the former
Soviet Union, the rate of entry by foreign banks has been
slower, but the trend is similar. Although the number of
countries welcoming foreign banks is growing, many questions
about foreign bank entry are still being debated, including:
1) What draws foreign banks to a country? 2) Which banks
expand abroad? 3) What do foreign banks do once they arrive?
4) How does the mode of a bank's entry - for example,
as a branch of its parent, or as an independent subsidiary
company - affect its behavior? The authors summarize current
knowledge on these issues. In addition, since the existing
literature focuses heavily on industrial countries, they put
forth an agenda for further study of the effects of foreign
bank entry in developing countries. |
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