Bank Ownership

Bank Ownership
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.

Market Power and Monetary Policy Transmission

Market Power and Monetary Policy Transmission
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.

Asymmetric Information and the Market Structure of the Banking Industry

Asymmetric Information and the Market Structure of the Banking Industry
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.

Developing China's Capital Market

Developing China's Capital Market
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.

Globalization of Financial Institutions

Globalization of Financial Institutions
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.

Inherited or Earned? Performance of Foreign Banks in Central and Eastern Europe

Inherited or Earned? Performance of Foreign Banks in Central and Eastern Europe
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.

The Federal Reserve System Purposes and Functions

The Federal Reserve System Purposes and Functions
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.

Bank Ownership

Bank Ownership
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.