How foreign participation and market concentration impact bank spreads : evidence from Latin America, Vol. 1 of 1

About

Countries

Data & Research

Learning

News

Projects & Operations

Publications

Topics

Home > Data & Research > Research > Author Profile > Report Details

How foreign participation and market concentration impact bank spreads : evidence from Latin America

Author:	Martinez Peria, Maria Soledad; Mody, Ashoka;	Collection Title:	Policy, Research working paper series ; no. WPS 3210
Country:	Latin America;	Date Stored:	2004/11/08
Document Date:	2004/02/01	Document Type:	Policy Research Working Paper
Language:	English	Region:	Latin America & Caribbean
Report Number:	WPS3210	SubTopics:	Payment Systems & Infrastructure; Financial Crisis Management & Restructuring; Banks & Banking Reform; Banking Law; Municipal Financial Management; Decentralization; Financial Intermediation
Volume No:	1 of 1

Summary: Increasing foreign participation and high concentration levels characterize the recent evolution of banking sectors' market structures in developing countries. The authors analyze the impact of these factors on Latin American bank spreads during the late 1990s. Their results suggest that foreign banks were able to charge lower spreads relative to domestic banks. This was more so for de novo foreign banks than for those that entered through acquisitions. The overall level of foreign bank participation seemed to influence spreads indirectly, primarily through its effect on administrative costs. Bank concentration was positively and directly related to both higher spreads and costs.


Official Documents Official, scanned versions of documents (may include signatures, etc.)
File Type		Description	File Size (mb)

	PDF 33 pages	Official version*	0.30
	Text	Text version**

* The official version is derived from scanning the final, paper copy of the document and is the official,
archived version including all signatures, charts, etc.

** The text version is the OCR text of the final scanned version and is not an accurate representation of the final text.
It is provided solely to benefit users with slow connectivity.

Permanent URL for this page: http://go.worldbank.org/TV8ORTDYF0