Bank Ownership : Trends and Implications
This paper presents recent trends in government and foreign bank ownership across countries and summarizes the evidence regarding the implications of bank ownership structure for bank performance and competition, financial stability, and access to...
Main Authors: | , , |
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Format: | Working Paper |
Language: | English |
Published: |
World Bank, Washington, DC
2018
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Subjects: | |
Online Access: | http://documents.worldbank.org/curated/en/810621515444012541/Bank-ownership-trends-and-implications http://hdl.handle.net/10986/29160 |
Summary: | This paper presents recent trends in
government and foreign bank ownership across countries and
summarizes the evidence regarding the implications of bank
ownership structure for bank performance and competition,
financial stability, and access to finance. The evidence
reviewed suggests that foreign-owned banks tend to be more
efficient than domestic banks in developing countries,
promote competition in host banking sectors, and help
stabilize credit when host countries face idiosyncratic
shocks. But there are trade-offs, since foreign-owned banks
can also transmit external shocks and might not always
contribute to expanding access to credit. The record on the
impact of government bank ownership suggests few benefits,
especially for developing countries. |
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