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The effects of ownership on bank efficiency in Latin America

  • Catarina Figueira
  • Joseph Nellis
  • David Parker

In recent years many countries have privatised their state-owned banks and encouraged foreign investment. This article investigates the roles of state and private ownership and foreign and domestic ownership on the performance of banks across Latin America. Using a range of financial and economic ratios, data envelopment analysis (DEA) and regression modelling, the study reveals that by 2001 there was surprisingly little difference in performance between state-owned and privately-owned banks and between foreign and domestically-owned banks. The study also reports significantly different levels of bank performance in different Latin American countries, suggesting that country differences outweighed ownership differences in explaining performance.

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Article provided by Taylor & Francis Journals in its journal Applied Economics.

Volume (Year): 41 (2009)
Issue (Month): 18 ()
Pages: 2353-2368

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Handle: RePEc:taf:applec:v:41:y:2009:i:18:p:2353-2368
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