Bank Ownership - Trends and Implications

48 Pages Posted: 9 Jan 2018 Last revised: 24 Jan 2018

See all articles by Robert Cull

Robert Cull

World Bank - Development Research Group (DECRG)

Maria Soledad Martinez Peria

International Monetary Fund (IMF)

Jeanne Emma Verrier

University of Geneva - Graduate Institute, Geneva (IHEID)

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

Suggested Citation

Cull, Robert and Martinez Peria, Maria Soledad and Verrier, Jeanne Emma, Bank Ownership - Trends and Implications (January 8, 2018). World Bank Policy Research Working Paper No. 8297, Available at SSRN: https://ssrn.com/abstract=3098574

Robert Cull (Contact Author)

World Bank - Development Research Group (DECRG) ( email )

1818 H. Street, N.W.
MSN3-311
Washington, DC 20433
United States
202-473-6365 (Phone)
202-522-1155 (Fax)

HOME PAGE: http://econ.worldbank.org/staff/rcull

Maria Soledad Martinez Peria

International Monetary Fund (IMF) ( email )

700 19th Street, N.W.
Washington, DC 20431
United States

Jeanne Emma Verrier

University of Geneva - Graduate Institute, Geneva (IHEID)

Geneva
Switzerland

Do you have negative results from your research you’d like to share?

Paper statistics

Downloads
146
Abstract Views
784
Rank
360,858
PlumX Metrics