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
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Objekttyp
- Arbeitspapier
Beteiligte
- Claeys, Sophie
- Hainz, Christa
- Sveriges Riksbank
Entstanden
- 2007