IDEAS home Printed from https://ideas.repec.org/p/wop/pennin/03-10.html
   My bibliography  Save this paper

Foreign Banks in the Pacific: Some History and Policy Issues

Author

Listed:
  • Adrian E. Tschoegl

Abstract

Foreign banks now dominate retail banking in the territories, commonwealths, and nations of the Pacific Islands. Generally, banking is highly concentrated, with two Australian banks dominating the Australian sphere of influence, and three French banks dominating the French sphere. The situation in the U.S. sphere is a little more diverse, though in all three spheres there are situations of monopoly. The foreign banks have certain desirable attributes but also limitations. Locally-owned banks have complementary strengths, but also over-riding weaknesses. Government-owned banks have had a particularly unsuccessful history as political lending has frequently led to the banks’ failure. On balance, banking in the region calls out for innovative responses.

Suggested Citation

  • Adrian E. Tschoegl, 2003. "Foreign Banks in the Pacific: Some History and Policy Issues," Center for Financial Institutions Working Papers 03-10, Wharton School Center for Financial Institutions, University of Pennsylvania.
    • Handle: RePEc:wop:pennin:03-10
    as

    Download full text from publisher

    File URL: http://fic.wharton.upenn.edu/fic/papers/03/0310.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Berger, Allen N. & Miller, Nathan H. & Petersen, Mitchell A. & Rajan, Raghuram G. & Stein, Jeremy C., 2005. "Does function follow organizational form? Evidence from the lending practices of large and small banks," Journal of Financial Economics, Elsevier, vol. 76(2), pages 237-269, May.
    2. Michael T. Skully, 1987. "Financial Institutions and Markets in the South Pacific," Palgrave Macmillan Books, Palgrave Macmillan, number 978-1-349-09623-7, December.
    3. Merrett, D. T., 2002. "The internationalization of Australian banks," Journal of International Financial Markets, Institutions and Money, Elsevier, vol. 12(4-5), pages 377-397.
    4. Du, Julan, 2003. "Why do multinational enterprises borrow from local banks?," Economics Letters, Elsevier, vol. 78(2), pages 287-291, February.
    5. Cole, Rodney V., 1993. "Economic development in the South Pacific promoting the private sector," World Development, Elsevier, vol. 21(2), pages 233-245, February.
    6. Briguglio, Lino, 1995. "Small island developing states and their economic vulnerabilities," World Development, Elsevier, vol. 23(9), pages 1615-1632, September.
    7. Shiers, Alden F., 2002. "Branch banking, economic diversity and bank risk," The Quarterly Review of Economics and Finance, Elsevier, vol. 42(3), pages 587-598.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Dixon, Keith & Gaffikin, Michael, 2014. "Accounting practices as social technologies of colonialistic outreach from London, Washington, et Cetera," CRITICAL PERSPECTIVES ON ACCOUNTING, Elsevier, vol. 25(8), pages 683-708.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Tschoegl, Adrian E., 2004. "Who owns the major US subsidiaries of foreign banks?: A note," Journal of International Financial Markets, Institutions and Money, Elsevier, vol. 14(3), pages 255-266, July.
    2. Anna Maria Pinna & Vania Licio, 2013. "Measuring insularity as a state of nature. Is there a case of bad geography," ERSA conference papers ersa13p706, European Regional Science Association.
    3. Cook, Paul & Kirkpatrick, Colin, 1998. "Labor market adjustment in small open economies: The case of Micronesia," World Development, Elsevier, vol. 26(5), pages 845-855, May.
    4. Camilleri, Silvio John & Falzon, Joseph, 2013. "The Challenges of Productivity Growth in the Small Island States of Europe: A Critical Look of Malta and Cyprus," MPRA Paper 62489, University Library of Munich, Germany.
    5. Manuel Illueca & José Pastor & Emili Tortosa-Ausina, 2009. "The effects of geographic expansion on the productivity of Spanish savings banks," Journal of Productivity Analysis, Springer, vol. 32(2), pages 119-143, October.
    6. Azmat Gani, 2006. "Pacific island countries high per capita foreign aid requirement," Journal of International Development, John Wiley & Sons, Ltd., vol. 18(2), pages 285-292.
    7. DeYoung, Robert & Glennon, Dennis & Nigro, Peter, 2008. "Borrower-lender distance, credit scoring, and loan performance: Evidence from informational-opaque small business borrowers," Journal of Financial Intermediation, Elsevier, vol. 17(1), pages 113-143, January.
    8. Knyazeva, Anzhela & Knyazeva, Diana, 2012. "Does being your bank’s neighbor matter?," Journal of Banking & Finance, Elsevier, vol. 36(4), pages 1194-1209.
    9. Armindo Frias & João Cabral & à lvaro Costa, 2015. "Logistic optimization in tourism networks," ERSA conference papers ersa15p1451, European Regional Science Association.
    10. Gropp, R. & Grundl, C. & Guttler, A., 2012. "Does Discretion in Lending Increase Bank Risk? Borrower Self-Selection and Loan Officer Capture Effects," Other publications TiSEM bfec5360-2a2b-47e4-ba3f-d, Tilburg University, School of Economics and Management.
    11. Lee, Chien-Chiang & Yang, Shih-Jui & Chang, Chi-Hung, 2014. "Non-interest income, profitability, and risk in banking industry: A cross-country analysis," The North American Journal of Economics and Finance, Elsevier, vol. 27(C), pages 48-67.
    12. Song Zhang & Liang Han & Konstantinos Kallias & Antonios Kallias, 2021. "The value of in-person banking: evidence from U.S. small businesses," Review of Quantitative Finance and Accounting, Springer, vol. 57(4), pages 1393-1435, November.
    13. Hakenes, Hendrik & Schnabel, Isabel, 2011. "Bank size and risk-taking under Basel II," Journal of Banking & Finance, Elsevier, vol. 35(6), pages 1436-1449, June.
    14. Jennie Bai & Massimo Massa, 2021. "Is Human-Interaction-based Information Substitutable? Evidence from Lockdown," NBER Working Papers 29513, National Bureau of Economic Research, Inc.
    15. Cyree, Ken B. & Spurlin, W. Paul, 2012. "The effects of big-bank presence on the profit efficiency of small banks in rural markets," Journal of Banking & Finance, Elsevier, vol. 36(9), pages 2593-2603.
    16. Hassan Belkacem Ghassan & Abdelkrim Ahmed Guendouz, 2019. "Panel modeling of z-score: evidence from Islamic and conventional Saudi banks," International Journal of Islamic and Middle Eastern Finance and Management, Emerald Group Publishing Limited, vol. 12(3), pages 448-468, July.
    17. Wenlian Gao & Feifei Zhu & Kai Chen, 2023. "The role of bank lenders in firm leverage adjustments," Journal of Financial Research, Southern Finance Association;Southwestern Finance Association, vol. 46(1), pages 63-97, February.
    18. Erel, Isil & Liebersohn, Jack, 2022. "Can FinTech reduce disparities in access to finance? Evidence from the Paycheck Protection Program," Journal of Financial Economics, Elsevier, vol. 146(1), pages 90-118.
    19. Fabio Panetta & Fabiano Schivardi & Matthew Shum, 2009. "Do Mergers Improve Information? Evidence from the Loan Market," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 41(4), pages 673-709, June.
    20. Sebastian Garmann, 2018. "God save the queen, god save us all? Monarchies and institutional quality," Scottish Journal of Political Economy, Scottish Economic Society, vol. 65(2), pages 186-204, May.

    More about this item

    Keywords

    foreign banks; Pacific islands; bank failure;
    All these keywords.

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:wop:pennin:03-10. See general information about how to correct material in RePEc.

    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 CitEc recognized a bibliographic reference but did not link an item in RePEc 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 RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Thomas Krichel (email available below). General contact details of provider: https://edirc.repec.org/data/fiupaus.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.