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Openness and efficiency in Brazilian banking

Author

Listed:
  • Afonso S. Bevilaqua

    (Department of Economics PUC-Rio)

  • Eduardo Loyo

    (John F. Kennedy School of Government, Harvard University)

Abstract

Brazil has recently made great strides in opening its domestic banking market to foreign participation, contrary to what one would have expected from its negotiating stance in regional and multilateral fora dealing with trade in financial services. We review the possible gains from such unilateral liberalization move, and proceed to measure one specific gain that appears most promising: improvements in cost efficiency in the production of banking services. Our results indicate that these gains indeed materialized, although not to the same extent in all segments of the banking market.

Suggested Citation

  • Afonso S. Bevilaqua & Eduardo Loyo, 1998. "Openness and efficiency in Brazilian banking," Textos para discussão 390, Department of Economics PUC-Rio (Brazil).
    • Handle: RePEc:rio:texdis:390
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    References listed on IDEAS

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    Cited by:

    1. Luiz Chabalgoity & Emerson Marinho & Mauricio Benegas & Paulo de M. Jorge Neto, 2005. "The Impact Of De-Regulamentation On The Brazilian Banking Industry: A Production Metafrontier Approach," Anais do XXXIII Encontro Nacional de Economia [Proceedings of the 33rd Brazilian Economics Meeting] 093, ANPEC - Associação Nacional dos Centros de Pós-Graduação em Economia [Brazilian Association of Graduate Programs in Economics].
    2. Marcelo de Paiva Abreu, 1998. "Brazil, the GATT, and the WTO: history and prospects," Textos para discussão 392, Department of Economics PUC-Rio (Brazil).
    3. William C. Gruben & John H. Welch, 2001. "Banking and currency crisis recovery: Brazil's turnaround of 1999," Economic and Financial Policy Review, Federal Reserve Bank of Dallas, issue Q IV, pages 12-23.
    4. Afonso S. Bevilaqua, 2002. "State Government Bailouts in Brazil," Research Department Publications 3137, Inter-American Development Bank, Research Department.

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