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Local Banking Competition and Efficiency in the Presence of Offshore Financial Institutions: Evidence from the Caribbean

Author

Listed:
  • Gordon, Leo-Rey

Abstract

Offshore banking is a significant aspect of the financial environment in some Caribbean Islands. The objective of this paper is to identify whether domestic banks located in Caribbean offshore centers operate any differently from domestic banks located in islands that do not host offshore banking. Balance sheets and income statements between 1993 and 2004 are used to measure the level of competitiveness and efficiency of banking activity. The results show that domestic banks located in Caribbean offshore financial centers operate in a less competitive manner and are less efficient in their role in providing financial intermediation than local commercial banks located in non-offshore banking islands.

Suggested Citation

  • Gordon, Leo-Rey, 2009. "Local Banking Competition and Efficiency in the Presence of Offshore Financial Institutions: Evidence from the Caribbean," MPRA Paper 49618, University Library of Munich, Germany.
  • Handle: RePEc:pra:mprapa:49618
    as

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    File URL: https://mpra.ub.uni-muenchen.de/49618/1/MPRA_paper_49618.pdf
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    References listed on IDEAS

    as
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    Full references (including those not matched with items on IDEAS)

    More about this item

    Keywords

    Competitiveness; Efficiency; Offshore Banking; Financial Intermediaries;

    JEL classification:

    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages

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