Denying Foreign Bank Entry: Implications for Bank Interest Margins
In: Banking Market Structure and Monetary Policy
AbstractThis paper examines the impact of restricting foreign bank entry on bank net interest margins while controlling for (a) impediments to domestic bank entry, (b) the degree of foreign bank ownership of the domestic banking industry, (c) an array of bank-specific characteristics, (c) banking sectorconcentration, and (d) various country traits. Using data on almost 1200 banks across 47 countries, the results suggest that restricting foreign bank entry boosts bank net interest margins. Also, restricting foreign bank entry is special since restricting domestic bank entry does not help explainbank margins and the degree of foreign bank ownership also enters insignificantly.
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This chapter was published in: Luis Antonio Ahumada & J. Rodrigo Fuentes & Norman Loayza (Series Editor) & Klaus Schmidt-Hebbel (Series Editor) (ed.) Banking Market Structure and Monetary Policy, , chapter 9, pages 271-292, 2004.
This item is provided by Central Bank of Chile in its series Central Banking, Analysis, and Economic Policies Book Series with number v07c09pp271-292.
Other versions of this item:
- Ross Levine, 2003. "Denying Foreign Bank Entry: Implications For Bank Interest Margins," Working Papers Central Bank of Chile 222, Central Bank of Chile.
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