Foreign Bank Ownership and Household Credit
Tilburg University - European Banking Center, CentER
University of St. Gallen, Swiss Institute of Banking and Finance
September 30, 2012
European Banking Center Discussion Paper No. 2011-024
CentER Discussion Paper Series No. 2011-089
This paper uses survey data for over 23,000 households from 28 transition countries in 2010 to explore how the use of household credit is related to foreign bank ownership. In countries with higher foreign bank presence we find a stronger relation between household income, education and employment status and the use of credit cards and mortgages. Our findings are robust to endogeneity and are supply rather than demand-driven. They suggest that foreign banks- as compared to domestic banks – are more likely to cherry-pick their retail credit customers.
Number of Pages in PDF File: 37
Keywords: Access to finance, Household credit, Bank-ownership
JEL Classification: G2, G18, O16, P34working papers series
Date posted: August 31, 2010 ; Last revised: October 26, 2012
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