IDEAS home Printed from https://ideas.repec.org/
MyIDEAS: Login to save this paper or follow this series

Foreign Banks' Entry and Departure: The Recent Brazilian Experience (1996-2006)

  • Pedro Fachada
Registered author(s):

    There is a broad literature documenting the recent trend towards a larger foreign banking presence in both mature and emerging markets. Less documented are the few situations where banking internationalization has contracted. Brazil is one such case. After a large-scale entry in the late 90s, foreign banks have retreated, being absorbed by their domestic competitors. This paper examines these opposite trends and associates de-internationalization mainly with lower relative profitability of foreign firms. Bank-level panel data investigates the determinants of earnings and costs according to ownership, providing evidence that greater foreign presence contributed to curb domestic banks’ costs, but not their profitability. This assessment is consistent with widespread evidence that internationalization forces local banks to operate more efficiently.

    If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.

    File URL: http://www.bcb.gov.br/pec/wps/ingl/wps164.pdf
    Download Restriction: no

    Paper provided by Central Bank of Brazil, Research Department in its series Working Papers Series with number 164.

    as
    in new window

    Length:
    Date of creation: Jun 2008
    Date of revision:
    Handle: RePEc:bcb:wpaper:164
    Contact details of provider: Web page: http://www.bcb.gov.br/?english

    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.:

    as in new window
    1. Demirguc-Kunt, Asli & Huizinga, Harry, 1998. "Determinants of commercial bank interest margins and profitability : some international evidence," Policy Research Working Paper Series 1900, The World Bank.
    Full references (including those not matched with items on IDEAS)

    This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

    When requesting a correction, please mention this item's handle: RePEc:bcb:wpaper:164. 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: (Francisco Marcos Rodrigues Figueiredo)

    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.

    This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.