Foreign Bank Acquisitions and Outreach : Evidence from Mexico
Recently, developing countries have witnessed a sharp increase in foreign bank participation. The authors examine the impact on banking outreach using newly gathered data for Mexico, where foreign bank participation rose from 2 percent to 83 percen...
Main Authors: | , |
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Language: | English |
Published: |
World Bank, Washington, DC
2012
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Subjects: | |
Online Access: | http://documents.worldbank.org/curated/en/2008/01/9592785/foreign-bank-acquisitions-outreach-evidence-mexico http://hdl.handle.net/10986/6866 |
Summary: | Recently, developing countries have
witnessed a sharp increase in foreign bank participation.
The authors examine the impact on banking outreach using
newly gathered data for Mexico, where foreign bank
participation rose from 2 percent to 83 percent of assets
during 1997-2005. Country-, bank-, and bank-municipality
level estimations show a decline in the number of deposit
and loan accounts. While country- and bank-level estimations
indicate an increase in the share of municipalities with
bank branches and in the likelihood of bank presence,
bank-municipality regressions show that only rich and urban
municipalities benefited. Overall, the evidence is
consistent with a decline in outreach. |
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