Foreign Bank Penetration In Domestic Banking Markets. Evidence on Central and Eastern Europe

• Autorzy: Christopher J. Green , Victor Murinde , Ivaylo Nikolov
• Języki publikacji: EN

Abstrakty

EN

Whereas in many emerging markets foreign bank penetration can be examined with respect to an established domestically owned banking sector, the '"monobank,, legacy of directed credit and central planning in the European transition economies is such that foreign bank entry has been an integral element of privatisation and the whole process of building financial institutions and markets. In this paper, we measure the degree of foreign bank penetration in the domestic banking market in Bulgaria, Croatia, the Czech Republic, Estonia, Hungary, Latvia, Lithuania, Poland and Romania. We then econometrically test for differences in the lending patterns of domestically owned local banks in comparison with those of foreign owned local banks, using a panel of 273 foreign and domestic banks in the nine sample countries over the period 1992 - 1999. We also consider whether any differences can be explained by microeconomic (bank-specific) factors and economic fundamentals. The econometric results show that bank-specific (m icroeconomic) factors are the key determinants of foreign bank penetration, although economic fundamentals are also important. In general, the evidence suggests that countries with high market concentration, higher real interest rates, and poorly performing domestic banks are associated with higher foreign bank penetration. (original abstract)

Słowa kluczowe

PL

Rynki wschodzące; Sektor bankowy; Banki zagraniczne; Instytucje finansowe; Rynki finansowe

EN

Emerging markets; Banking sector; Foreign bank; Financial institutions; Financial markets

• Czasopismo: Raporty. Opracowania. Referaty / Akademia Ekonomiczna w Poznaniu
• Rocznik: 2002
• Numer: nr 20 Foreign Banks and Economic Transition: Papers in Progress
• Strony: 69-99

Twórcy

autor

Christopher J. Green

• Loughborough University

autor

Victor Murinde

• Birmingham Business School, United Kingdom

autor

Ivaylo Nikolov

• Loughborough University

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