scholarly journals Foreign Bank Entry, Performance of Domestic Banks, and Sequence of Financial Liberalization

Author(s):  
Yan Wang ◽  
Nihal Bayraktar
2013 ◽  
Vol 2 (4) ◽  
pp. 40-53
Author(s):  
Nsiah Acheampong

This article empirically examines the effects of foreign bank entry on the financial performance of Merchant Bank Ghana Limited and Ghana Commercial Banks Limited in Ghana from 1975 to 2008. The main result of the pooled regression was that foreign bank entry relatively increased domestic banks’ return on assets for the period 1992-2008; a period with a high influx of foreign banks into Ghana. This result supported the studies by Beck, Demirguc-Kunt, and Levine (2006) and Boldrin and Levine (2009) that found that foreign bank entry enhanced domestic banks profitability margins. The presence of foreign-owned banks was not detrimental to the financial performance of the domestic-owned banks in Ghana.


2020 ◽  
Vol 4 (1) ◽  
pp. 54-60
Author(s):  
Gardachew Worku Fekadu

The present paper uses a qualitative approach with data obtained from secondary sources on the sequence and timing of financial liberalization in Ethiopia. The approach is purely qualitative, which simply examines the sequence of financial sector liberalization measures introduced in Ethiopia between 1992 and 2014. The study aims to identify the financial sector liberalization measures introduced and critically evaluate the timing and sequence of these programs implemented in Ethiopia. In light of documented empirical findings, it was found that the financial liberalization programme in Ethiopia was not properly and timely sequenced, and as a result, the Ethiopian financial sector has remained underdeveloped when compared to sub-Saharan African standards and its neighbouring countries. The regulatory fences, especially the restriction of foreign bank entry, should be seriously reconsidered and such fences shall be soon uprooted and steps towards the establishment of the financial market should be taken.


2012 ◽  
Vol 24 (3) ◽  
pp. 195-207 ◽  
Author(s):  
M. Kabir Hassan ◽  
Benito Sanchez ◽  
Geoffrey M. Ngene ◽  
Ali Ashraf

2015 ◽  
Vol 06 (02) ◽  
pp. 1550007 ◽  
Author(s):  
Sasidaran Gopalan

An important feature of international financial liberalization in several emerging market and developing economies (EMDEs) over the last two decades has been the rising foreign bank participation in their domestic banking systems. While the term financial liberalization has been widely used in literature, it is often not carefully defined. What is the relationship between foreign bank entry and financial liberalization? This paper lays out a simple framework to understand the different components of financial liberalization, its relationship with domestic deregulation as well as foreign bank entry and also surveys the trends and implications of foreign bank entry in EMDEs.


2007 ◽  
Vol 10 (01) ◽  
pp. 101-126 ◽  
Author(s):  
Hidenobu Okuda ◽  
Suvadee Rungsomboon

This paper investigates the impact of foreign bank entry on Thai domestic banks by using panel data on 17 domestic commercial banks from 1990 to 2002. The study examines different factors affecting bank performance, including changes in the foreign ownership of banks, financial regulations, and market structure. The results show that an increase in the presence of foreign banks has led to a rise in overhead expenses, a decline in profits, and an increase in the interest spreads of domestic banks. In the short run, increased competition from foreign banks seems to have negative effects on domestic banks.


2017 ◽  
Vol 35 (3) ◽  
pp. 23-42
Author(s):  
Ran Cheng ◽  
Chao Wu ◽  
Keun-Yeob Oh

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