THE ENTRY OF FOREIGN BANKS INTO LATIN AMERICA: A SOURCE OF STABILITY OR FINANCIAL FRAGILITY?

This paper aims to contribute to the debate on the presence of foreign banks in Latin America. To clarify the discussion, we shall conduct a survey of the empirical literature devoted to internationalization in the banking sector so as to provide a better analysis of the determinants that currently...

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Detalles Bibliográficos
Autor principal: Alexandre Minda
Formato: Artículo científico
Publicado: Universidad Nacional Autónoma de México 2007
Materias:
Economía y Finanzas
Foreign banks
Latin America
financial stability
credit squeeze
banking fragility
Acceso en línea:http://www.redalyc.org/articulo.oa?id=11820083003
http://biblioteca.clacso.edu.ar/gsdl/cgi-bin/library.cgi?a=d&c=mx/mx-030&d=11820083003oai
Aporte de:
Red de Bibliotecas Virtuales de Ciencias Sociales (CLACSO) de Consejo Latinoamericano de Ciencias Sociales
id I16-R122-11820083003oai
record_format dspace
institution Consejo Latinoamericano de Ciencias Sociales
institution_str I-16
repository_str R-122
collection Red de Bibliotecas Virtuales de Ciencias Sociales (CLACSO)
topic Economía y Finanzas
Foreign banks
Latin America
financial stability
credit squeeze
banking fragility
spellingShingle Economía y Finanzas
Foreign banks
Latin America
financial stability
credit squeeze
banking fragility
Alexandre Minda
THE ENTRY OF FOREIGN BANKS INTO LATIN AMERICA: A SOURCE OF STABILITY OR FINANCIAL FRAGILITY?
topic_facet Economía y Finanzas
Foreign banks
Latin America
financial stability
credit squeeze
banking fragility
description This paper aims to contribute to the debate on the presence of foreign banks in Latin America. To clarify the discussion, we shall conduct a survey of the empirical literature devoted to internationalization in the banking sector so as to provide a better analysis of the determinants that currently underpin foreign banking investments. The multinational banks concerned come mainly from the European Union, particularly Spain, and primarily focus their investments in the region's large emerging economies. They display profitability indicators that are on a par with those of domestic banks, generate a significantly lower level of operational efficiency, but are more efficient in their management of risk. International banks can help reinforce banking stability by spreading new risk management methods, introducing new control procedures and strengthening asset solidity. However, they are partly responsible for the credit squeeze from which Latin America is suffering. Foreign banks can be the cause of new sources of banking fragility such as the exposure to foreign exchange risks, the increase in market influence, persistently high intermediation spreads and moral hazard.
format Artículo científico
Artículo científico
author Alexandre Minda
author_facet Alexandre Minda
author_sort Alexandre Minda
title THE ENTRY OF FOREIGN BANKS INTO LATIN AMERICA: A SOURCE OF STABILITY OR FINANCIAL FRAGILITY?
title_short THE ENTRY OF FOREIGN BANKS INTO LATIN AMERICA: A SOURCE OF STABILITY OR FINANCIAL FRAGILITY?
title_full THE ENTRY OF FOREIGN BANKS INTO LATIN AMERICA: A SOURCE OF STABILITY OR FINANCIAL FRAGILITY?
title_fullStr THE ENTRY OF FOREIGN BANKS INTO LATIN AMERICA: A SOURCE OF STABILITY OR FINANCIAL FRAGILITY?
title_full_unstemmed THE ENTRY OF FOREIGN BANKS INTO LATIN AMERICA: A SOURCE OF STABILITY OR FINANCIAL FRAGILITY?
title_sort entry of foreign banks into latin america: a source of stability or financial fragility?
publisher Universidad Nacional Autónoma de México
publishDate 2007
url http://www.redalyc.org/articulo.oa?id=11820083003
http://biblioteca.clacso.edu.ar/gsdl/cgi-bin/library.cgi?a=d&c=mx/mx-030&d=11820083003oai
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