Foreign Banks in Poor Countries : Theory and Evidence

Theory and Evidence

Foreign Banks in Poor Countries : Theory and Evidence
We study how foreign bank penetration affects financial sector development in poor countries. A theoretical model shows that when foreign banks are better at monitoring highend customers than domestic banks, their entry benefits those customers but may hurt other customers and worsen welfare. The model also predicts that credit to the private... READ MORE...

Publication date: January 2006
ISBN 9781451862782
$15.00

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