ENGLISH

Being a Foreigner Among Domestic Banks: Asset or Liability?

By Neeltje van Horen; Stijn Claessens

Book information

Publisher
International Monetary Fund
Year
2009
ISBN
9781452781334, 9781451874181
LCC
HG3883 -- .C53 2009eb
Language
english
Format
EPUB
Filesize
1 MB (1425965 bytes)
Series
IMF Working Papers
Edition
1
Pages
37\0
Time added
2023-08-25 23:40:32
Banks and bankingForeign.International. ; Investments

Description

Studying a large number of banks in various countries between 1999 and 2006, we document that foreign banks perform better when from a high income country, when host country competition is limited, and when they are large and rely more on deposits for funding. Foreign banks'' performance improves over time, possibly as they adapt, and is better when the home country is geographical or cultural (but not institutional) close to the host country. These findings show the importance of controlling for heterogeneity among foreign banks and help reconcile some contradictory results found in the literature on foreign banks'' performance.

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