The Impact of Foreign Bank Entry on Domestic Banks in LDCs: an Econometric Analysis

• Autorzy: Niels Hermes , Robert Lensink
• Języki publikacji: EN

Abstrakty

EN

This paper empirically investigates the impact of foreign bank entry on the domestic banking sector of LDCs. In particular, we focus on how foreign bank entry may influence changes in income, profitability and costs of domestic banks. We use a sample of 143 domestic banks in 26 LDCs for the 1990-1996 period. We show that foreign bank entry - both in terms of presence and size - has a negative impact on income and costs of domestic banks, but only after it has reached a certain minimum level. Before this minimum level has been reached foreign bank entry has a positive impact on income and costs. Moreover, there is no clear impact on profitability of domestic banks.(original abstract)

Słowa kluczowe

EN

Banks; Foreign bank; Banking sector; Profitability of banks; Least developed countries

PL

Banki; Banki zagraniczne; Sektor bankowy; Rentowność banków; Kraje najsłabiej rozwinięte

• Czasopismo: Raporty. Opracowania. Referaty / Akademia Ekonomiczna w Poznaniu
• Rocznik: 2002
• Numer: nr 20 Foreign Banks and Economic Transition: Papers in Progress
• Strony: 129--146

Twórcy

autor

Niels Hermes

• University of Groningen, Netherlands

autor

Robert Lensink

• University of Groningen, Netherlands

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