How Foreign Participation andMarket Concentration Impact Bank Spreads: Evidence fromLatin America

Martinez Peria, Maria Soledad ; Mody, Ashoka

World Bank, Washington, D.C.

关键词: FOREIGN BANKS;    FINANCIAL INTERMEDIATION;    INTEREST RATES;    SPREAD;    SPILLOVER EFFECTS;   

DOI  :  10.1596/1813-9450-3210
RP-ID  :  WPS3210

学科分类：社会科学、人文和艺术（综合）

来源: World Bank Open Knowledge Repository

【 摘 要 】

Increasing foreign participation andhigh concentration levels characterize the recent evolutionof banking sectors' market structures in developingcountries. The authors analyze the impact of these factorson Latin American bank spreads during the late 1990s. Theirresults suggest that foreign banks were able to charge lowerspreads relative to domestic banks. This was more so for denovo foreign banks than for those that entered throughacquisitions. The overall level of foreign bankparticipation seemed to influence spreads indirectly,primarily through its effect on administrative costs. Bankconcentration was positively and directly related to bothhigher spreads and costs.