Foreign Banks, Asymmetric Information and Financial Inclusion in Emerging and Developing Countries

Kamilah Williams

Emerging Markets Finance and Trade, 2025, vol. 61, issue 3, 669-683

Abstract: This article empirically examines the effects of foreign bank presence on the various dimensions of financial inclusion, conditional on the level of information sharing. Using data on individuals in 93 emerging and developing countries, it is found that higher foreign bank presence is associated with a reduction in the probability that an individual receives a loan from a formal financial institution. It is also associated with more reliance on loans from informal sources such as family. However, information sharing through an institution, such as a private credit bureau or public credit registry, partially offsets the negative effect of foreign bank presence on the access to credit dimension of financial inclusion. The results of this study emphasize that for economies to take advantage of the potential benefits of financial globalization, appropriate information sharing infrastructure is necessary.

Date: 2025
References: Add references at CitEc
Citations:

Downloads: (external link)
http://hdl.handle.net/10.1080/1540496X.2024.2399531 (text/html)
Access to full text is restricted to subscribers.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:mes:emfitr:v:61:y:2025:i:3:p:669-683

Ordering information: This journal article can be ordered from
http://www.tandfonline.com/pricing/journal/MREE20

DOI: 10.1080/1540496X.2024.2399531

Access Statistics for this article

More articles in Emerging Markets Finance and Trade from Taylor & Francis Journals
Bibliographic data for series maintained by Chris Longhurst ().