@techreport{Crystal2001Does,
abstract = {Foreign bank entrants into emerging markets are usually thought to improve the condition and performance of acquired institutions, and more generally to enhance local financial stability. We use bank-specific data for a range of Latin American countries since the mid-1990s to address elements of this claim. Across the seven largest countries, we find that the financial strength ratings of local banks acquired by foreign entities generally show a slight improvement relative to their domestic counterparts. Our more in-depth case studies of Chile, Colombia, and Argentina do not indicate striking differences in health between larger foreign and domestic retail-oriented banks (although state banks are noticeably weaker). However, foreign banks often have higher average loan growth, higher average provisioning expense, and greater loss-absorption capacity. These results suggest that foreign ownership may provide important positive influences on the stability and development of emerging market banking systems.},
address = {New York, NY},
author = {Jennifer S. Crystal and B.Gerard Dages and Linda S. Goldberg},
copyright = {http://www.econstor.eu/dspace/Nutzungsbedingungen},
keywords = {F3; F4; 330; Internationale Bank; Betriebliche Kennzahl; Aufstrebende M\"{a}rkte; Lateinamerika},
language = {eng},
number = {137},
publisher = {Federal Reserve Bank of New York},
title = {Does foreign ownership contribute to sounder banks in emerging markets? The Latin American experience},
type = {Staff Report, Federal Reserve Bank of New York},
url = {http://hdl.handle.net/10419/60633},
year = {2001}
}
