How foreign participation and market concentration impact bank spreads evidence from Latin America by Ashoka Mody

Cover of: How foreign participation and market concentration impact bank spreads | Ashoka Mody

Published by World Bank in Washington, D.C .

Written in English

Read online

Places:

  • Latin America.

Subjects:

  • Banks and banking -- Latin America.,
  • Investments, Foreign -- Latin America.

Edition Notes

Book details

StatementAshoka Mody and Maria Soledad Martinez Peria.
SeriesPolicy research working paper ;, 3210, Policy research working papers (Online) ;, 3210.
ContributionsMartinez Peria, Maria Soledad, World Bank.
Classifications
LC ClassificationsHG3881.5.W57
The Physical Object
FormatElectronic resource
ID Numbers
Open LibraryOL3389103M
LC Control Number2004615256

Download How foreign participation and market concentration impact bank spreads

None has examined how different types of foreign bank entry affect spreads. Our paper investigates the impact of foreign bank participation and concentration on bank spreads in a sample of Latin American countries during the late s.

Using bank-level data for Argentina, Chile, Colombia, Mexico, and Peru, we examine a number of hypotheses.

How foreign participation and market concentration impact bank spreads: evidence from Latin America (English) Abstract. Increasing foreign participation and high concentration levels characterize the recent evolution of banking sectors' market structures in developing by: How foreign participation and market concentration impact bank spreads: Evidence from Latin America Article in Journal of money credit and banking 36(3) June with 41 Reads.

Downloadable. Increasing foreign participation and high concentration levels characterize the recent evolution of banking sectors'market structures in developing countries. The authors analyze the impact of these factors on Latin American bank spreads during the late s.

Their results suggest that foreign banks were able to charge lower spreads relative to domestic banks. Keywords: market structure, concentration, foreign bank participation, bank spreads.

The market structure of the banking industry in many devel-oping countries has recently undergone significant changes. In particular, the ongoing and, often, extensive entry of foreign banks has been the sournce of a far-reaching transformation.

Increasing foreign participation and high concentration levels characterize the recent evolution of banking sectors'market structures in developing countries.

The authors analyze the impact of these factors on Latin American bank spreads during the late s. Their results suggest that foreign banks were able to charge lower spreads relative to domestic banks. Author(s): Martinez Peria, Maria Soledad & Mody, Ashoka.

Abstract: Increasing foreign participation and high concentration levels characterize the recent evolution of banking sectors'market structures in developing countries.

The authors analyze the impact of these factors on Latin American bank spreads during the late s. Their results suggest that foreign banks were able to charge.

Martinez Peria, Maria Soledad & Mody, Ashoka, "How Foreign Participation and Market Concentration Impact Bank Spreads: Evidence from Latin America," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 36(3), pagesJune. How foreign participation and market concentration impact bank spreads: evidence from Latin America (English) Increasing foreign participation and high concentration levels characterize the recent evolution of banking sectors' market structures in developing countries.

Journal of Money, Credit, and Banking Edited by Paul Evans, The Ohio State University; Mark J. Flannery, University of Florida; and Kenneth D. West, University of Wisconsin Widely read and cited by researchers and policy makers, Journal of Money, Credit, and Banking is a primary economics journal reporting major findings in the study of monetary and fiscal policy, credit markets, money and.

How foreign participation and market concentration impact bank spreads: evidence from Latin America (Inglês) Increasing foreign participation and high concentration levels characterize the recent evolution of banking sectors' market structures in developing countries. / Ashoka Mody with Fang-Yi Wang --Growing up with capital flows / Ashoka Mody with Antu Panini Murshid --How foreign participation and market concentration impact bank spreads: evidence from Latin America / Ashoka Mody with Maria Soledad Martinez Peria --The role of cross-border mergers and acquisitions in Asian restructuring / Ashoka Mody.

Foreign direct investment and the world economy. [Ashoka Mody] -- Asking the question of whether Foreign Direct Investment (FDI) is 'integrating' the world economy, this comprehensive volume consists of an overview of current FDI research.

with Antu Murshid --How foreign participation and market concentration impact bank spreads: evidence. Asking the question of whether Foreign Direct Investment (FDI) is 'integrating' the world economy, this comprehensive volume consists of an overview of current FDI research.

While the term 'integrating' is often used, the real test should be whether FDI is instrumental in bringing per capita incomes across countries closer Edition: 1st Edition. Read this book on Questia. Read the full-text online edition of The World Bank in Latin America: A Summary of Activities ().

Home» Browse» Books» Book details, The World Bank in. The overall level of foreign bank participation seemed to influence spreads indirectly, primarily through its effect on administrative costs. Bank concentration was positively and directly related. This paper narrowly focuses on the role of foreign participation in local government bond markets in EMs rather than corporate bond markets due to data limitations on foreign participation in the latter, although one could expect the impact of foreign participation on the yields and volatility of corporate bonds to be somewhat similar, in theory.

The impact on the foreign exchange market for dollars resulting from the Fed purchasing euros will be: A. A decrease in the demand for dollars B. An increase in the demand for dollars C. An increase in the supply of dollars D. A decrease in the demand for dollars and an increase in the supply of dollars AACSB: Analytic BLOOM'S: Understand Difficulty: Medium Topic: Mechanics of Exchange.

The World Bank was founded, along with the International Monetary Fund, at the Bretton Woods Monetary and Financial Conference in July The Bank is an international cooperative institution with 74 member countries. A 'read' is counted each time someone views a publication summary (such as the title, abstract, and list of authors), clicks on a figure, or views or downloads the full-text.

Comment on "How foreign participation and market concentration impact bank spreads: Evidence from Latin America" by Maria Soledad Martinez Peria and Ashoka Mody JOURNAL OF MONEY CREDIT AND BANKING Haber, S. ; 36 (3): Foreign direct investment and the world economy. [Ashoka Mody] Fang-Yi Wang --Growing up with capital flows / Ashoka Mody with Antu Panini Murshid --How foreign participation and market concentration impact bank spreads: How foreign participation and.

Comment on "How Foreign Participation and Market Concentration Impact Bank Spreads: Evidence from Latin America" by Maria Soledad Martinez Peria and Ashoka Mody. Article Feb In order to evaluate the indirect impact of foreign bank participation on interest margins, in specification (II) we include the market share of foreign banks as additional explanatory variable.

17 Our estimations do not support the hypothesis that foreign bank participation has significant spillover effects, when theoretically-motivated and Cited by: 1. Introduction. Theory suggests that whether and to what extent an economy prices information asymmetry amongst traders depends on the level of competition for firms’ shares (Kyle,Lambert et al., ).Competition, however, is an abstract concept and measuring it is fraught with by: 3.

concentrated banking systems. Martinez Peria and Mody () study impact of increasing foreign participation and high concentration levels on bank spreads in Latin America during s.

While foreign banks were able to charge lower spreads relative to domestic banks. Martinez Peria, M.S. and A. Mody () How foreign participation and market concentration impact bank spreads: Evidence from Latin America.

Journal of Money, Author: P. Lekshmi, C. Ganesh. The effect of foreign entry and ownership structure on the Philippine domestic banking market Besides considering the impact of foreign bank entry, we also examine how changes in the level of foreign ownership affect domestic banks.

an increase in foreign bank participation apparently took years to occur in any significant sense. While Cited by: network on the effects of foreign exchange market operations in Latin America.

The central banks of Brazil, Chile, Colombia, Mexico and Peru participated. The goal of the project was to understand the impact that foreign exchange interventions conducted by these central banks has on the exchange by: 1.

In an evolving market with diverse participation, including a small but important group of non-algorithmic and manual traders, our analysis therefore highlights some of the potential trade-offs involved in designing a workup that balances the liquidity needs of all participant types with the goal of promoting diversity of participation.

And others such as the level of interest rates, bank concentration are strongly correlated to the Islamic bank’s profitability (Molyneux and Thornton; ). Abreu and Mendes () used Interest Margin, Return on Assets (ROA) and Return on Equity (ROE) between and from various EU countries (Portugal, Spain, France, and Germany).

“How Foreign Participation and Bank Concentration Impact Bank Spreads: Evidence from Latin America” (with A. Mody). Journal of Money, Credit, and Bank This paper introduces a comprehensive database on bank ownership for countries overand reviews foreign bank behavior and impact.

It documents substantial increases in foreign bank presence, with many more home and host countries. Current market shares of foreign banks average 20 percent in OECD countries and 50 percent by:   An overview of research on the microstructure of foreign exchange (FX) markets is presented.

We begin by summarizing the institutional features of FX trading and describe how they have evolved since the s. We then explain how these features are represented in microstructure models of FX trading.

Next, we describe the links between microstructure and traditional macro exchange-rate Author: Martin D.D. Evans, Dagfinn Rime. This paper introduces a comprehensive database on bank ownership for countries overand reviews foreign bank behavior and impact. It documents substantial increases in foreign bank presence, with many more home and host countries.

Current market shares of foreign banks average 20 percent in OECD countries and 50 percent by: Looking at the performance of the banks in terms of the spread between commercial bank deposit and lending rates, Table 1 shows a declining trend reflecting the significant impact of the entry of foreign banks.

The country’s banking sector is noted for having a large spread not only because of high profit margins but also from high intermediation costs in the form of taxes and reserve Cited by: Foreign participation in local currency bond markets John D.

Burger a,⁎, Francis E. Warnock b,c,d a Sellinger School of Business and Management, Loyola College of Maryland, United States b Darden Business School, University of Virginia, United States c Institute for International Integration Studies, Trinity College Dublin, Ireland d National Bureau of Economic Research, United StatesFile Size: KB.

gap by linking the literature on the impact of bank market concentration, regulation, and institutions on economic growth with the literature analyzing the real effects of banking crises.

The paper makes several contributions. First, we analyze how bank concentration influences the real effects of banking crises. M.S. Martinez Peria, A. ModyHow foreign participation and market concentration impact bank spreads: evidence from Latin America J.

Money Credit Bank., 36 (3) (), pp. Google ScholarCited by: domestic currency that must be given up to get a unit of foreign currency. In other word, nominal exchange rate is the price of domestic currency in term of foreign currency.

It is denoted as E. The real exchange rate is the relative price of foreign goods in term of domestic goods. In other word, it is the exchange rate adjusted for Size: KB. The Bank is exposed to market risk through unfavourable price movements affecting the gold price, interest rates and foreign exchange rates.

Market risk is managed within a policy framework defined and set by the GEC and Resmanco. Credit limits are combined with operational limits to further mitigate market risk e.g. transactional and counterparty limits.n Exchange 2.

Market Imperfections (barriers that hamper free movements) It is located in a low or middle income economy as defined by the world bank 2,Its investable market capitalization is low relative to its most recent GNI figures Market Concentration. Emerging markets tend to be much more concentrated than the developed.ment and knowledge spillovers in real sectors, competition effects of foreign bank entry in emerging markets, and the context of the foreign bank investment in CEECs and LACs.

Based on the literature, I develop the hypotheses to be tested. Section 3 introduces the methodologies employed to measure managerial efficiency and competition, and to.

5444 views Tuesday, November 17, 2020