-
Financial Liberalization and Foreign Bank Entry on the Domestic Banking Performance in MENA Countries
October 2, 2012 Editor 0
Abstract: This study examines the impact of financial liberalization and foreign bank entry on the domestic banking sector from 1996 to 2007, and builds upon and expands the work of Lee (2002).
We find that foreign bank entry, financial liberalization, ownership structure and degree of openness of foreign bank entry positively impact domestic banking system operating efficiency, capitalization, risk management, long-term soundness, financial performance as well as economic and financial development.
However, foreign bank entry is associated with reduced profit margins and increased operating costs of domestic banks in countries with less developed capital markets. Empirical evidence seems to support the argument that foreign bank presence leads to better allocation of capital and eliminates connected lending practices.
Related Posts
- International R&D Transfer and Technical Efficiency: Evidence from Panel Study Using Stochastic Frontier Analysis
How Disruptive Will Innovations from Emerging Markets Be?
Cloud Computing for Development: A Four-Stage Analysis of Public, Private, and Hybrid Solutions
What About Facebook Messenger Chatbots for Development?
Foreign direct investment and development: Insights from literature and ideas for research
Building for Development: Could Infrastructure Draw Unexpected Investors to Africa?
Categories: Development
Tags: bank, banking, Banking Performance in MENA Countries, capital, costs, Countries, developed, Development, domestic, eliminates, Entry on the Domestic Banking Performance, financial, financial liberalization and foreign bank, foreign, impact, liberalization, liberalization and foreign bank entry, markets, profit
Similarities, challenges and opportunities of Wikipedia content and open source projects Cross-Divisional Innovation in the Large Corporation: Thoughts and Evidence on Its Value and the Role of the Early Stages of Innovation
Subscribe to our stories
Recent Posts
- SL Crowd Green Solutions September 21, 2020
- Digital transformation in the banking sector: surveys exploration and analytics August 3, 2020
- Why Let Others Disrupt You? Take the Smart Self-Disruption Journey! August 3, 2020
- 5 Tips for Crowdfunding During the Pandemic August 3, 2020
- innovation + africa; +639 new citations August 3, 2020
Categories
Archives
Popular Post-All time
- A review on biomass-based... 0.9k views
- Can blockchain disrupt ge... 682 views
- Prize-winning projects pr... 678 views
- Apply Now: $500,000 for Y... 605 views
- Test Your Value Propositi... 533 views