Foreign Ownership And Market Power In Banking
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Author | : Robert Cull |
Publisher | : International Monetary Fund |
Total Pages | : 49 |
Release | : 2017-03-22 |
Genre | : Business & Economics |
ISBN | : 1475588127 |
This paper presents recent trends in 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 are 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 tradeoffs, since foreign-owned banks can transmit external shocks and might not always expand access to credit. The record on the impact of government bank ownership suggests few benefits, especially for developing countries.
Author | : Mr. Romain A Duval |
Publisher | : International Monetary Fund |
Total Pages | : 56 |
Release | : 2021-07-09 |
Genre | : Business & Economics |
ISBN | : 1513588001 |
We show that firms’ market power dampens the response of their output to monetary policy shocks, using firm-level data for the United States and a large cross-country firm-level dataset for 14 advanced economies. The estimated impact of a firm’s markup on its response to a monetary policy shock is large enough to materially affect monetary policy transmission. We also find some evidence that the role of markup in monetary policy transmission, while independent from other channels, is greater for firms whose characteristics — notably size and age — are likely to be associated with greater financial constraints. We rationalize these findings through a simple partial equilibrium model in which borrowing constraints amplify disproportionately low-markup firms’ responses to changes in interest rates.
Author | : Tadeusz Kowalski |
Publisher | : |
Total Pages | : 200 |
Release | : 2000 |
Genre | : Economic stabilization |
ISBN | : |
Author | : Robert De Young |
Publisher | : |
Total Pages | : 48 |
Release | : 1995 |
Genre | : Banks and banking |
ISBN | : |
Author | : Mr.Giovanni Dell'Ariccia |
Publisher | : International Monetary Fund |
Total Pages | : 32 |
Release | : 1998-06-01 |
Genre | : Business & Economics |
ISBN | : 145195154X |
The paper analyzes the effects of informational asymmetries on the market structure of the banking industry in a multi-period model of spatial competition. All lenders face uncertainty with regard to borrowers’ creditworthiness, but, in the process of lending, incumbent banks gather proprietary information about their clients, acquiring an advantage over potential entrants. These informational asymmetries are an important determinant of the industry structure and may represent a barrier to entry for new banks. The paper shows that, in contrast with traditional models of horizontal differentiation, the steady-state equilibrium is characterized by a finite number of banks even in the absence of fixed costs.
Author | : D. Cumming |
Publisher | : Springer |
Total Pages | : 259 |
Release | : 2015-12-17 |
Genre | : Business & Economics |
ISBN | : 1137341572 |
China is an increasingly influential emerging economy that is currently attracting the attention of academics, practitioners, and policy makers. This book is a collection of cutting edge research findings on issues relating to the experiences and challenges of China's capital market development.
Author | : Board of Governors of the Federal Reserve System |
Publisher | : |
Total Pages | : 0 |
Release | : 2002 |
Genre | : Banks and Banking |
ISBN | : 9780894991967 |
Provides an in-depth overview of the Federal Reserve System, including information about monetary policy and the economy, the Federal Reserve in the international sphere, supervision and regulation, consumer and community affairs and services offered by Reserve Banks. Contains several appendixes, including a brief explanation of Federal Reserve regulations, a glossary of terms, and a list of additional publications.
Author | : Hasan Dincer |
Publisher | : Springer |
Total Pages | : 0 |
Release | : 2016-08-27 |
Genre | : Business & Economics |
ISBN | : 9783319344973 |
This peer-reviewed volume from the Society for the Study of Business and Finance, discusses current issues in globalization and financial system from an international political and economic perspective. Contemporary instruments and actors in the global financial system are specially analyzed and the discussion of managerial and financial issues of the global financial strategies offers novelty to readers and researchers in the field.
Author | : Robert Cull |
Publisher | : International Monetary Fund |
Total Pages | : 49 |
Release | : 2017-03-22 |
Genre | : Business & Economics |
ISBN | : 1475588135 |
This paper presents recent trends in 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 are 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 tradeoffs, since foreign-owned banks can transmit external shocks and might not always expand access to credit. The record on the impact of government bank ownership suggests few benefits, especially for developing countries.
Author | : Ms.Emilia Magdalena Jurzyk |
Publisher | : International Monetary Fund |
Total Pages | : 41 |
Release | : 2010-01-01 |
Genre | : Business & Economics |
ISBN | : 1451961715 |
Using a combination of propensity score matching and difference-in-difference techniques we investigate the impact of foreign bank ownership on the performance and market power of acquired banks operating in Central and Eastern Europe. This approach allows us to control for selection bias as larger but less profitable banks were more likely to be acquired by foreign investors. We show that during three years after the takeover, banks have become more profitable due to cost minimization and better risk management. They have additionally gained market share, because they passed their lower cost of funds to borrowers in terms of lower lending rates. Previous studies failed to pick up the improvements in performance of takeover banks, because they did not account for the performance of financial institutions before acquisitions.