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Empirical evidence on the relationships between concentration and profitability in Latin American banking

Author

Listed:
  • Arize, Augustine C.
  • Kallianotis, Ioannis N.
  • Kasibhatla, Krishna M.
  • Malindretos, John
  • Rivera-Solis, Luis Eduardo

Abstract

There has been growth in globalization as a result of increased liberalization. This has also resulted in an increase in the role of financial institutions, such as banks. It is the purpose of this study to test Classen’s (2001) hypothesis that increase foreign bank presence has positive welfare implications and that the functioning of national banking markets are improved as a result. Using financial data for 2003 this paper will examine the influence of foreign bank entry on Latin American domestic markets.

Suggested Citation

  • Arize, Augustine C. & Kallianotis, Ioannis N. & Kasibhatla, Krishna M. & Malindretos, John & Rivera-Solis, Luis Eduardo, 2008. "Empirical evidence on the relationships between concentration and profitability in Latin American banking," MPRA Paper 34902, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:34902
    as

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    References listed on IDEAS

    as
    1. Kumbhakar, Subal C, et al, 2001. "The Effects of Deregulation on the Performance of Financial Institutions: The Case of Spanish Savings Banks," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 33(1), pages 101-120, February.
    2. Gabriella Montinola & Ramon Moreno, 2001. "The political economy of foreign bank entry and its impact: theory and a case study," Pacific Basin Working Paper Series 2001-11, Federal Reserve Bank of San Francisco.
    3. Claessens, Stijn & Demirguc-Kunt, Asl[iota] & Huizinga, Harry, 2001. "How does foreign entry affect domestic banking markets?," Journal of Banking & Finance, Elsevier, vol. 25(5), pages 891-911, May.
    4. Claude Barfield, 1996. "International Financial Markets: Harmonization Versus Competition," Books, American Enterprise Institute, number 52695, September.
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    More about this item

    Keywords

    Latin American banking; Concentration and Profitability; Foreign Bank Influence;
    All these keywords.

    JEL classification:

    • L25 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Performance
    • G15 - Financial Economics - - General Financial Markets - - - International Financial Markets
    • D43 - Microeconomics - - Market Structure, Pricing, and Design - - - Oligopoly and Other Forms of Market Imperfection
    • F39 - International Economics - - International Finance - - - Other

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