Arbeitspapier

Acquisition versus greenfield: The impact of the mode of foreign bank entry on information and bank lending rates

Policy makers often decide to liberalize foreign bank entry but put limitations on the mode of entry. We study how different entry modes affect the lending rate set by foreign and domestic banks. Our model captures two essential features of banking competition in emerging markets: Domestic banks possess private information about their incumbent clients and foreign banks have better screening skills. Our model predicts that competition is stronger if foreign entry occurs through a greenfield investment and domestic banks' interest rates are thus lower. We find empirical support for this differential competition effect for a sample of banks from ten Eastern European countries for the period 1995-2003.

Sprache
Englisch

Erschienen in
Series: Sveriges Riksbank Working Paper Series ; No. 210

Klassifikation
Wirtschaft
Banks; Depository Institutions; Micro Finance Institutions; Mortgages
Nonprofit Institutions; NGOs; Social Entrepreneurship
Thema
Banking
Foreign Entry
Mode of Entry
Interest Rate
Asymmetric Information
Finanzmarktregulierung
Internationale Bank
Markteintritt
Bankenregulierung
Zins
Theorie
EU-Staaten (Osteuropa)

Ereignis
Geistige Schöpfung
(wer)
Claeys, Sophie
Hainz, Christa
Ereignis
Veröffentlichung
(wer)
Sveriges Riksbank
(wo)
Stockholm
(wann)
2007

Handle
Letzte Aktualisierung
10.03.2025, 11:44 MEZ

Datenpartner

Dieses Objekt wird bereitgestellt von:
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. Bei Fragen zum Objekt wenden Sie sich bitte an den Datenpartner.

Objekttyp

  • Arbeitspapier

Beteiligte

  • Claeys, Sophie
  • Hainz, Christa
  • Sveriges Riksbank

Entstanden

  • 2007

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