IDEAS home Printed from https://ideas.repec.org/a/afj/journ3/v12y2022i1p55-69.html

Home–Host Distance in Governance Quality, Foreign Banks’ Lending, and Emerging Host Markets’ Resilience

Author

Listed:
  • Oskar Kowalewski
  • Pawel Pisany

    (Lille Économie Management, University of Lille)

Abstract

In this study, we investigate how governance quality determines the lending behavior of foreign-owned banks in emerging host markets. We do this by employing a dataset that includes foreign banks from 45 developed markets operating in 58 emerging markets in the period 1996–2018. We incorporate direct measures of governance quality as well as home–host country distance in governance quality. Additionally, we investigate foreign banks’ lending behavior during the 2008-2009 financial crisis (GFC). We document that more micro-oriented governance dimensions, such as business regulatory quality and corruption control, play a role for foreign banks. Furthermore, we show that home–host distance in governance quality shapes lending behaviors to a greater extent than the quality in host markets itself. We also show that governance quality proximity between home and host markets fostered emerging economies’ resilience during the GFC to a greater extent than quality as a standalone.

Suggested Citation

  • Oskar Kowalewski & Pawel Pisany, 2022. "Home–Host Distance in Governance Quality, Foreign Banks’ Lending, and Emerging Host Markets’ Resilience," Review of Development Finance Journal, Chartered Institute of Development Finance, vol. 12(1), pages 55-69.
    • Handle: RePEc:afj:journ3:v:12:y:2022:i:1:p:55-69
    as

    Download full text from publisher

    File URL: https://journals.co.za/doi/abs/10.10520/ejc-rdfin_v12_n1_a4
    Download Restriction: no
    ---><---

    Other versions of this item:

    More about this item

    Keywords

    ;
    ;
    ;
    ;
    ;

    JEL classification:

    • G01 - Financial Economics - - General - - - Financial Crises
    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • G28 - Financial Economics - - Financial Institutions and Services - - - Government Policy and Regulation

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:afj:journ3:v:12:y:2022:i:1:p:55-69. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Kirk De Doncker (email available below). General contact details of provider: https://edirc.repec.org/data/afrgrza.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.