The Impact of Foreign Banks Presence on the Performance of Domestic Banks in Kosovo during the Period 2001-2007
The purpose of this study is to empirically research the impacts of the foreign bank’s presence on the performance of domestic banking sector in Kosovo. The research data on foreign and domestic banking are quarterly time seri data gathered by the Central Bank for the period 2001-2007. By using the compatible data on seven commercial banks, we introduce how the net interest margin, non interest margin, overhead cost, tax paid, and profitability differ between the foreign and domestic banks. We find that the foreign banks have higher net interest margin and profit than the domestic banks. The research outcome indicates that the presence of foreign banks had a negative and statistically significant impact on the net interest margin and loan loss provision of domestic banks, but positively related to the non-interest income, overhead cost and profitability of domestic banks, but we did not find any statistically significant values. The general conclusion is that the presence of foreign banks has not influenced on the increase of competitiveness.
Volume (Year): (2010)
Issue (Month): 4(4) (December)
|Contact details of provider:|| Web page: http://journals.univ-danubius.ro/index.php/oeconomica/|
More information through EDIRC
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Hermes, Niels & Lensink, Robert, 2001. "The impact of foreign bank entry on domestic banking markets: a note," Research Report 01E62, University of Groningen, Research Institute SOM (Systems, Organisations and Management).
- Lensink, Robert & Hermes, Niels, 2004. "The short-term effects of foreign bank entry on domestic bank behaviour: Does economic development matter?," Journal of Banking & Finance, Elsevier, vol. 28(3), pages 553-568, March.
- repec:dgr:rugsom:01e62 is not listed on IDEAS
- Niels Hermes & Robert Lensink, 2004. "Foreign Bank Presence, Domestic Bank Performance and Financial Development," Journal of Emerging Market Finance, Institute for Financial Management and Research, vol. 3(2), pages 207-229, August.
- 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.
- Janek Uiboupin, 2004. "Effects Of Foreign Banks Entry On Bank Performance In The Cee Countries," University of Tartu - Faculty of Economics and Business Administration Working Paper Series 33, Faculty of Economics and Business Administration, University of Tartu (Estonia).
When requesting a correction, please mention this item's handle: RePEc:dug:actaec:y:2010:i:4:p:87-103. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Daniela Robu)
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.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with 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 profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.