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Foreign Bank Ownership and Household Credit

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  • Beck, Thorsten

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Abstract

This paper uses survey data for over 23,000 households from 28 transition countries in 2010 to explore how the use of household credit is related to foreign bank ownership. In countries with higher foreign bank presence we find a stronger relation between household income, education and employment status and the use of credit cards and mortgages. Our findings are robust to endogeneity and are supply rather than demand-driven. They suggest that foreign banks - as compared to domestic banks – are more likely to cherry-pick their retail credit customers.

Suggested Citation

  • Beck, Thorsten, 2012. "Foreign Bank Ownership and Household Credit," Working Papers on Finance 1206, University of St. Gallen, School of Finance.
  • Handle: RePEc:usg:sfwpfi:2012:06
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    Citations

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    Cited by:

    1. Wayne Passmore & Alexander H. von Hafften, 2017. "Are Basel's Capital Surcharges for Global Systemically Important Banks Too Small?," Finance and Economics Discussion Series 2017-021, Board of Governors of the Federal Reserve System (U.S.).
    2. Piotr Denderski & Wojciech Paczos, 2015. "Asymmetric financial integration bank ownership and monetary policy in emerging economies," NBP Working Papers 218, Narodowy Bank Polski, Economic Research Department.
    3. repec:onb:oenbfi:y:2018:i:q1-18:b:2 is not listed on IDEAS
    4. repec:eee:ecmode:v:68:y:2018:i:c:p:306-317 is not listed on IDEAS
    5. Dinc, Yusuf, 2017. "Comparative empirical analysis on the effect of mortgage loan on capital adequacy ratio," MPRA Paper 86451, University Library of Munich, Germany, revised 25 May 2017.
    6. repec:seb:journl:v:15:y:2017:i:2:p:209-227 is not listed on IDEAS
    7. Panayotis D. Alexakis & Ioannis G. Samantas, 2018. "Foreign ownership and market power: the special case of European banks," Working Papers 242, Bank of Greece.
    8. Brown, Martin, 2013. "The transmission of banking crises to households : lessons from the 2008-2011 crises in the ECA region," Policy Research Working Paper Series 6528, The World Bank.

    More about this item

    Keywords

    Access to finance; Household credit; Bank-ownership.;

    JEL classification:

    • G2 - Financial Economics - - Financial Institutions and Services
    • G18 - Financial Economics - - General Financial Markets - - - Government Policy and Regulation
    • O16 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Financial Markets; Saving and Capital Investment; Corporate Finance and Governance
    • P34 - Economic Systems - - Socialist Institutions and Their Transitions - - - Finance

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