The Effects of Foreign Bank Entry on the Thai Banking Market: Empirical Analysis from 1990 to 2002

Hidenobu Okuda, 英信 奥田, ヒデノブ オクダ and Suvadee Rungsomboon

No 2004-20, CEI Working Paper Series from Center for Economic Institutions, Institute of Economic Research, Hitotsubashi University

Abstract: This paper investigates the impact of foreign bank entry on Thai domestic banks by using panel data on 17 domestic commercial banks from 1990 to 2002. The paper examines different factors affecting bank performance, including changes in the foreign ownership of banks, financial regulations, and market structure. We find that an increase in foreign bank presence leads to a rise in overhead expenses, a decline in profits, and an increase in the interest spreads of domestic banks. In the short run, increased competition from foreign banks negatively affects domestic banks. However, in the long run, domestic banks' performance should improve.

Keywords: Bank Performance; Foreign Entry; Crisis; Thailand (search for similar items in EconPapers)
JEL-codes: D24 G21 G28 G32 (search for similar items in EconPapers)
Pages: 23 pages
Date: 2005-03
References: View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
https://hermes-ir.lib.hit-u.ac.jp/hermes/ir/re/13919/wp2004-20a.pdf

Related works:
Journal Article: The Effects of Foreign Bank Entry on the Thai Banking Market: Empirical Analysis from 1990 to 2002 (2007)
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:hit:hitcei:2004-20

Access Statistics for this paper

More papers in CEI Working Paper Series from Center for Economic Institutions, Institute of Economic Research, Hitotsubashi University Contact information at EDIRC.
Bibliographic data for series maintained by Reiko Suzuki ( this e-mail address is bad, please contact ).