Authors
Stijn Claessens, Aslι Demirgüç-Kunt, Harry Huizinga
Publication date
2001/5/1
Journal
Journal of banking & finance
Volume
25
Issue
5
Pages
891-911
Publisher
North-Holland
Description
Using 7900 bank observations from 80 countries for the 1988–1995 period, this paper examines the extent and effect of foreign presence in domestic banking markets. We investigate how net interest margins, overhead, taxes paid, and profitability differ between foreign and domestic banks. We find that foreign banks have higher profits than domestic banks in developing countries, but the opposite is the case for developed countries. Estimation results suggest that an increased presence of foreign banks is associated with a reduction in profitability and margins for domestic banks.
Total citations
Scholar articles
S Claessens, A Demirgüç-Kunt, H Huizinga - Journal of banking & finance, 2001
S Claessens, A Demirgui - World Bank, Policy Research working paper