Foreign ownership and bank performance Evidence from French market

This article examines the impact of the ownership of French banks on the bank performance. We show that domestic banks have a better performance than foreign banks, whether this performance is measured by risk, profitability, or stability. Moreover, we examine some of the home country risks that potentially impact the performance of foreign banks in the host country. Using a unique dataset with detailed information on country risk, our findings show that the level of risks in the home country does matter when examining the performance of foreign banks in the host country. More specifically, foreign banks from countries with a low level of risks seem to have a better performance in the host country than banks from countries with a high level of risks. Our findings contribute to the literature on the bank performance and provide new insights into the determinants of the foreign banks' performance.