The Evidence and Impact of Financial Globalization

Chapter 14

Foreign Bank Participation in Developing Countries

R. Cull and M.S. Martinez Peria

Finance and Private Sector Development Group of the World Bank (DECRG), Washington, DC, USA

Outline

Introduction

Foreign Bank Participation in Developing Countries: Trends and Regional Patterns

The Drivers of Foreign Bank Entry

Following Home Country Customers

Pursuing Opportunities in the Host Country

Restrictions on Foreign Participation and the Role of Crisis

Mechanisms that Help Mitigate Information Costs

The Consequences of Foreign Bank Entry

Foreign Bank Presence, Efficiency, and Competition

Foreign Bank Penetration and Banking Sector Stability

Foreign Bank Entry and Access to Credit

Conclusions

Acknowledgments

Glossary

References

Introduction

The ...