A Study on the Impact of Foreign Bank Entry on the Financial Business Performance of Banks in Emerging Markets
2
조회
0
다운로드
1
인용
0
참고문헌
키워드
초록
This paper mainly presents a literature review and aims to organize the research on the relationship between the entry of foreign banks and operational efficiency of banks, especially in inducing the effect of foreign banks on the banks of emerging markets. This paper introduces some methods for measuring banks’ operational efficiency based on financial indicators, review the related literature on the effect of foreign banks on the banks of emerging markets, and assess the different viewpoints. Theoretical analysis and empirical evidence show that at the beginning of the entry of foreign banks, the efficiency of foreign banks is lower than that of domestic banks. However, through cross-border mergers and acquisitions, the efficiency of foreign banks increases gradually. The entry of foreign banks has a positive effect on the transition of operation structure, technological innovation, and business innovation of banks. However, the credit strategy of foreign banks has a likely adverse effect, leading to financial service market segmentation. Moreover, domestic banks are forced to take risks, which may decrease operational efficiency. The effect of foreign banks shows different results according to the different levels of economic development and random exogenous factors.
Abstract
This paper mainly presents a literature review and aims to organize the research on the relationship between the entry of foreign banks and operational efficiency of banks, especially in inducing the effect of foreign banks on the banks of emerging markets. This paper introduces some methods for measuring banks’ operational efficiency based on financial indicators, review the related literature on the effect of foreign banks on the banks of emerging markets, and assess the different viewpoints. Theoretical analysis and empirical evidence show that at the beginning of the entry of foreign banks, the efficiency of foreign banks is lower than that of domestic banks. However, through cross-border mergers and acquisitions, the efficiency of foreign banks increases gradually. The entry of foreign banks has a positive effect on the transition of operation structure, technological innovation, and business innovation of banks. However, the credit strategy of foreign banks has a likely adverse effect, leading to financial service market segmentation. Moreover, domestic banks are forced to take risks, which may decrease operational efficiency. The effect of foreign banks shows different results according to the different levels of economic development and random exogenous factors.
참고문헌 (48)
- Awdeh, "Bank Efficiency and Foreign Ownership in the Lebanese Banking Sector", Review of Middle East Economics and Finance, 5(2), pp.1~22 (2009)
- Barajas, A., "The Impact of Liberalization and Foreign Investment in Colombia's Financial Sector", Journal of Development Economics, 63(1), pp.157~196 (2000)
- Battese, G. E, "A Model for Technical Inefficiency Effects in a Stochastic Frontier Production Function for Panel Data", Empirical Economics, 20(2), pp.325~332 (1995)
- Berger, A. N., "Globalization of Financial Institutions: Evidence from Cross-Border Banking Performance", Brookings-Wharton Papers on Financial Services, 3(1), pp.23~136 (2000)
- Berger, A. N., "Bank Ownership and Efficiency in China: What Will Happen in the World's Largest Nation", Journal of Banking & Finance, 33(1), pp.113~130 (2009)
- Berger, A. N, "Efficiency of Financial Institutions: International Survey and Directions for Future Research", European Journal of Operational Research, 98(2), pp.175~212 (1997)
- Berger, A. N., "The Ability of Banks to Lend to Informationally Opaque Small Businesses", Journal of Banking & Finance, 25(12), pp.2127~2167 (2001)
- Berger, A. N, "Inside the Black Box: What Explains Differences in the Efficiencies of Financial Institutions", Journal of Banking & Finance, 21(7), pp.895~947 (1997)
- Claessens, S., "How does Foreign Entry Affect Domestic Banking Markets", Journal of Banking & Finance, 25(5), pp.891~911 (2001)
- Acquisition Versus Greenfield: the Impact of the Mode of Foreign Bank Entry on Information and Bank Lending Rates, "Claeys, S.", European Central Bank, ~, pp.European Central Bank Working Paper Series No.653 (2006)
- Clarke, G., "Foreign Bank Entry: Experience, Implications for Developing Economies, and Agenda for Further Research", The World Bank Research Observer, 18(1), pp.25~ (2003)
- Dell'Ariccia, G., "Adverse Selection as a Barrier to Entry in the Banking Industry", The RAND Journal of Economics, 30(3), pp.515~534 (1999)
- Denizer, C., "Foreign Entry in Turkey’s Banking Sector, 1980-1997, In The Internationalization of Financial Services: Issues and Lessons for Developing Countries" (2000), Kluwer Academic
- Detragiache, E., "Foreign Banks in Poor Countries: Theory and Evidence", The Journal of Finance, 63(5), pp.2123~2160 (2008)
- Bank Efficiency In Transition Economies: Recent Evidence From South-Eastern Europe, "Fang", ~, pp.Bank of Finland Research Discussion Papers 5 (2011)
- Glass, A. J, "International Technology Transfer and the Technology Gap", Journal of Development Economics, 55(2), pp.369~398 (1998)
- Glass, A. J, "Multinational Firms and Technology Transfer", Scandinavian Journal of Economics, 104(4), pp.495~513 (2002)
- Gormley, T., "Costly Information, Foreign Entry, and Credit Access" (2008), Washington University
- Gorton, G, "Banking in Transition Economies: Does Efficiency Require Instability", Journal of Money, Credit and Banking, 30(3), pp.621~650 (1998)
- Hasan, I, "Development and Efficiency of the Banking Dector in a Transitional Economy: Hungarian Experience", Journal of Banking & Finance, 27(12), pp.2249~2271 (2003)
- Havrylchyk, O., "Efficiency of the Polish Banking Industry: Foreign Versus Domestic Banks", Journal of Banking & Finance, 30(7), pp.1975~1996 (2006)
- Hermes, N, "Foreign Bank Presence, Domestic Bank Performance and Financial Development", Journal of Emerging Market Finance, 3(2), pp.207~ (2004)
- Jordan, J. S., "The Market Reaction to the Disclosure of Supervisory Actions: Implications for Bank Transparency", Journal of Financial Intermediation, 9(3), pp.298~319 (2000)
- Financial Market Integration and Loan Competition: When is Entry Deregulation Socially Beneficial, "Kaas, L", European Central Bank, ~, pp.European Central Bank Working Paper No. 403 (2004)
- Kraft, E, "Bank Efficiency in Croatia: A Stochastic-Frontier Analysis", Journal of Comparative Economics, 26(2), pp.282~300 (1998)
- Lehner, M, "Entry of Foreign Banks and their Impact on Host Countries", Journal of Comparative Economics, 36(3), pp.430~452 (2008)
- Lensink, R., "Bank Efficiency and Foreign Ownership: Do Good Institutions Matter", Journal of Banking & Finance, 32(5), pp.834~844 (2008)
- Levine, R, "Stock Market Development and Long-Run Growth", The World Bank Economic Review, 10(2), pp.323~ (1996)
- Mahlberg, B, "Effects of the Single Market on the Austrian Insurance Industry", Empirical Economics, 28(4), pp.813~838 (2003)
- Mester, L. J., "A Study of Bank Efficiency Taking into Account Risk-Preferences", Journal of Banking & Finance, 20(6), pp.1025~1045 (1996)
- Mian, A., "Distance Constraints: The Limits of Foreign Lending in Poor Economies", The Journal of Finance, 61(3), pp.1465~1505 (2006)
- Nikiel, E. M, "Customer Type and Bank Efficiency in Poland: Implications for Emerging Market Banking", Contemporary Economic Policy, 20(3), pp.255~271 (2002)
- Okuda, H, "Comparative Cost Study of Foreign and Thai Domestic Banks in 1990-2002: Its Policy Implications for a Desirable Banking Industry Structure", Journal of Asian Economics, 17(4), pp.714~737 (2006)
- O'Sullivan, R.E, "Foreign Bank Presence in Emerging Markets: Help or Hindrance to Banking System Stability", Applied Economics Letters, 17(7), pp.623~626 (2010)
- Peek, J, "Collateral Damage: Effects of the Japanese Bank Crisis on Real Activity in the United States", The American Economic Review, 90(1), pp.30~45 (2000)
- Competition and Efficiency in the Czech Banking Sector, "Podpiera, A", Czech National Bank, 86~93, pp.CNB Financial Stability Report 2007 (2008)
- Poghosyan, T, "Foreign Bank Entry, Bank Efficiency and Market Power in Central and Eastern European Countries", Economics of Transition, 18(3), pp.571~598 (2010)
- Poghosyan, T., "Re-examining the Impact of Foreign Bank Participation on Interest Margins in Emerging Markets", Emerging Markets Review, 11(4) (2010)
- Managerial Behavior and Cost, "Profit Efficiency in the Banking Sectors of Central and Eastern European Countries", Rossi, S. P. S., 2005
- Sabi, M., "Comparative Analysis of Foreign and Domestic Bank Operations in Hungary", Journal of Comparative Economics, 22(2), pp.179~188 (1996)
- Sherman, H. D, "Bank Branch Operating Efficiency: Evaluation with Data Envelopment Analysis", Journal of Banking & Finance, 9(2), pp.297~315 (1985)
- Stiglitz, J. E., "The Role of the State in Financial Markets", World Bank Research Observer, Annual Conference on Development Economics Supplement, pp.19~61 (1993)
- Sufian, F., "Financial Crisis and the Efficiency of the Malaysian Banking Sector: Foreign vs. Domestic Banks", International Journal of Monetary Economics and Finance, 3(2), pp.140~158 (2010)
- Sufian, F, "Does Foreign Banks Entry Fosters Bank Efficiency? Empirical Evidence from Malaysia", Inzinerine Ekonomika-Engineering Economics, 21(5), pp.464~474 (2010)
- Efficiency in the Czech Banking Sector, "Taci, A", Charles University, ~ (1998)
- Van Tassel, E, "Asymmetric Information and the Mode of Entry in Foreign Credit Markets", Journal of Banking & Finance, 31(12), pp.3742~3760 (2007)
- Weill, L., "Banking Efficiency in Transition Economies", Economics of Transition, 11(3), pp.569~592 (2003)
- Yildirim, H. S, "Efficiency of Banks: Recent Evidence from the Transition Economies of Europe,1993-2000", European Journal of Finance, 13(2), pp.123~143 (2007)