Economics at your fingertips  

Does foreign bank branch activity affect lending behavior?

Oskar Kowalewski ()

No 2019-ACF-02, Working Papers from IESEG School of Management

Abstract: In this study, we examine the effects of foreign branch activity on commercial banks in the Central, Eastern, and Southeastern European countries for the period 1995-2015. We show that more foreign bank branches are present in countries that have higher taxes and regulatory restrictions on bank activity. The increased activity of bank branches negatively a ects foreign-owned bank lending, and to a lesser extent, that of state-owned banks. We attribute this finding to the fact that branches and foreign-owned banks compete for the same type of clients, namely, multinational corporations. The branch e ect seems to be larger for corporate loans than for consumer loans, which confirms our assumptions. Moreover, we find that the negative effect is stronger for foreign banks owned by multinational banks than by non-bank entities.

Keywords: foreign bank branch; lending; subsidiary; crisis; developing markets; EU Firm performance (search for similar items in EconPapers)
Pages: 47 pages
Date: 2019-03
New Economics Papers: this item is included in nep-eec and nep-tra
References: Add references at CitEc
Citations: View citations in EconPapers (1) Track citations by RSS feed

Downloads: (external link) (application/pdf)

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:

Access Statistics for this paper

More papers in Working Papers from IESEG School of Management Contact information at EDIRC.
Bibliographic data for series maintained by Joao DA CUNHA ().

Page updated 2023-05-22
Handle: RePEc:ies:wpaper:f201808