Entry of foreign banks and their impact on host countries

Maria Lehner and Monika Schnitzer ()

Journal of Comparative Economics, 2008, vol. 36, issue 3, pages 430-452

Abstract: Foreign bank entry is frequently associated with spillover effects for local banks and increasing competition in the local banking market. We study the impact of these effects on host countries, particularly, how these effects interact and how they depend on the competitive environment of the host banking market. An increase in the number of banks is more likely to have positive welfare effects the more competitive the market environment, whereas spillovers are less likely to have positive welfare effects the stronger bank competition. Hence, competitive effects seem to reinforce each other, while spillovers and competition tend to weaken each other. Journal of Comparative Economics 36 (3) (2008) 430-452.

Keywords: Foreign; bank; entry; Multinational; bank; Competition; in; banking; Spillover; effects (search for similar items in EconPapers)
Date: 2008

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Related works:
Working Paper: Entry of Foreign Banks and their Impact on Host Countries (2006)
Working Paper: Entry of Foreign Banks and their Impact on Host Countries (2006)
Working Paper: Entry of Foreign Banks and their Impact on Host Countries (2006)
Working Paper: Entry of Foreign Banks and their Impact on Host Countries (2006)
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Persistent link: http://EconPapers.repec.org/RePEc:eee:jcecon:v:36:y:2008:i:3:p:430-452

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