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dc.contributor.authorCrystal, Jennifer S.en_US
dc.contributor.authorDages, B.Gerarden_US
dc.contributor.authorGoldberg, Linda S.en_US
dc.description.abstractForeign 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.en_US
dc.publisher|aFederal Reserve Bank of New York |cNew York, NYen_US
dc.relation.ispartofseries|aStaff Report, Federal Reserve Bank of New York |x137en_US
dc.subject.stwInternationale Banken_US
dc.subject.stwBetriebliche Kennzahlen_US
dc.subject.stwAufstrebende Märkteen_US
dc.titleDoes foreign ownership contribute to sounder banks in emerging markets? The Latin American experienceen_US
dc.typeWorking Paperen_US

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