Bank Ownership - Trends and Implications
48 Pages Posted: 9 Jan 2018 Last revised: 24 Jan 2018
Date Written: January 8, 2018
Abstract
This paper presents recent trends in government and foreign bank ownership across countries and summarizes the evidence regarding the implications of bank ownership structure for bank performance and competition, financial stability, and access to finance. The evidence reviewed suggests that foreign-owned banks tend to be more efficient than domestic banks in developing countries, promote competition in host banking sectors, and help stabilize credit when host countries face idiosyncratic shocks. But there are trade-offs, since foreign-owned banks can also transmit external shocks and might not always contribute to expanding access to credit. The record on the impact of government bank ownership suggests few benefits, especially for developing countries.
Keywords: De Facto Governments, Technology Industry, Technology Innovation, Energy Privatization, Trade and Services, Financial Intermediation, Democratic Government, Economics and Finance of Public Institution Development, State Owned Enterprise Reform, Public Sector Administrative and Civil Service Reform, Public Sector Administrative & Civil Service Reform
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