Has Foreign Bank Entry Led to Sounder Banks in Latin America?

6 Pages Posted: 16 Mar 2005

See all articles by Linda S. Goldberg

Linda S. Goldberg

Federal Reserve Bank of New York; National Bureau of Economic Research (NBER)

Jennifer Crystal

Federal Reserve Banks - Federal Reserve Bank of New York

B. Gerard Dages

Federal Reserve Banks - Federal Reserve Bank of New York

Abstract

Policymakers continue to debate the merits of opening emerging market financial sectors to foreign ownership. A comparison of the 1995-2000 performance of foreign and domestic banks in select Latin American countries reveals that while foreign banks differed little from their domestic counterparts in overall financial condition, they showed more robust loan growth, a more aggressive response to asset quality deterioration, and a greater ability to absorb losses - characteristics that could help to strengthen the financial systems of their host countries.

Keywords: Latin America, bank, foreign, soundness

JEL Classification: F3, O1, G21

Suggested Citation

Goldberg, Linda S. and Crystal, Jennifer and Dages, B. Gerard, Has Foreign Bank Entry Led to Sounder Banks in Latin America?. Current Issues in Economics and Finance, Vol. 8, No. 1, January 2002. Available at SSRN: https://ssrn.com/abstract=687107

Linda S. Goldberg (Contact Author)

Federal Reserve Bank of New York ( email )

33 Liberty Street
New York, NY 10045
United States
212-720-2836 (Phone)
212-720-6831 (Fax)

National Bureau of Economic Research (NBER)

1050 Massachusetts Avenue
Cambridge, MA 02138
United States

Jennifer Crystal

Federal Reserve Banks - Federal Reserve Bank of New York ( email )

33 Liberty Street
New York, NY 10045
United States

B. Gerard Dages

Federal Reserve Banks - Federal Reserve Bank of New York ( email )

33 Liberty Street
New York, NY 10045
United States

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