TY  - BOOK
AU  - Cull,Robert
AU  - Cull,Robert
AU  - Soledad Martinez Peria,Maria
TI  - Foreign Bank Participation in Developing Countries: What Do We Know About the Drivers and Consequences of This Phenomenon? 
PY  - 2010///
CY  - Washington, D.C.
PB  - The World Bank
KW  - Access to Finance
KW  - Bank branches
KW  - Bank for international settlements
KW  - Banking sector
KW  - Banking stability
KW  - Banking system
KW  - Banks & Banking Reform
KW  - Debt
KW  - Debt Markets
KW  - Emerging Markets
KW  - Finance and Financial Sector Development
KW  - Financial integration
KW  - Financial regulation
KW  - Financial services
KW  - Foreign banks
KW  - Foreign Direct Investment
KW  - Foreign entry
KW  - Interest income
KW  - Interest rates
KW  - International Economics and Trade
KW  - Legal framework
KW  - Legislation
KW  - Operating costs
KW  - Overhead costs
KW  - Private Sector Development
KW  - Profitability
KW  - Return on assets
KW  - Subsidiaries
N2  - Foreign bank participation has increased steadily across developing countries since the mid-1990s. This paper documents this trend and surveys the existing literature to explore the drivers and consequences of this phenomenon, paying particular attention to the differences observed across regions both in the degree of foreign bank participation and in the impact of this process. Local profit opportunities, the absence of barriers to entry, and the presence of mechanisms to mitigate information problems have been the main factors driving foreign bank entry across developing countries. In general, foreign bank participation has been shown to exert a positive influence on banking sector efficiency and competition. The weight of the evidence suggests that foreign bank presence does not endanger, but rather enhances banking sector stability. And although some case studies suggest that foreign bank entry limits access to finance, many cross-country studies offer evidence to the contrary
UR  - http://elibrary.worldbank.org/doi/book/10.1596/1813-9450-5398
ER  -