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Foreign bank acquisitions and outreach : evidence from Mexico

Author

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  • Beck, Thorsten
  • Soledad Martinez Peria, Maria

Abstract

Recently, developing countries have witnessed a sharp increase in foreign bank participation. The authors examine the impact on banking outreach using newly gathered data for Mexico, where foreign bank participation rose from 2 percent to 83 percent of assets during 1997-2005. Country-, bank-, and bank-municipality level estimations show a decline in the number of deposit and loan accounts. While country- and bank-level estimations indicate an increase in the share of municipalities with bank branches and in the likelihood of bank presence, bank-municipality regressions show that only rich and urban municipalities benefited. Overall, the evidence is consistent with a decline in outreach.

Suggested Citation

  • Beck, Thorsten & Soledad Martinez Peria, Maria, 2008. "Foreign bank acquisitions and outreach : evidence from Mexico," Policy Research Working Paper Series 4467, The World Bank.
  • Handle: RePEc:wbk:wbrwps:4467
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    References listed on IDEAS

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    Keywords

    Banks&Banking Reform; Access to Finance; Debt Markets; Corporate Law;
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