Bank Ownership: Trends and Implications

Robert Cull, Maria Martinez Peria and Jeanne Verrier

No 2017/060, IMF Working Papers from International Monetary Fund

Abstract: This paper presents recent trends in bank ownership across countries and summarizes the evidence regarding the implications of bank ownership structure for bank performance and competition, financial stability, and access to finance. The evidence reviewed suggests that foreign-owned banks are more efficient than domestic banks in developing countries, promote competition in host banking sectors, and help stabilize credit when host countries face idiosyncratic shocks. But there are tradeoffs, since foreign-owned banks can transmit external shocks and might not always expand access to credit. The record on the impact of government bank ownership suggests few benefits, especially for developing countries.

Keywords: WP; bank ownership; government-owned bank; bank participation; foreign bank; government bank lending; ownership structure; bank governance; financial globalization; foreign banks; state-owned banks; privatization; government ownership; bank share; government bank participation; Commercial banks; Bank credit; Credit; Competition; Central and Eastern Europe; South Asia; Eastern Europe; Global; Central Asia (search for similar items in EconPapers)
Pages: 49
Date: 2017-03-22
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Citations: View citations in EconPapers (33)

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