The Dynamics of Foreign Bank Ownership : Evidence from Hungary

Majnoni, Giovanni ; Shankar, Rashmi ; Varhegyi, Eva

World Bank, Washington, DC

关键词: BAD DEBTS;    BANK ASSETS;    BANK BRANCHES;    BANK CAPITAL;    BANK LENDING;   

DOI  :  10.1596/1813-9450-3114
RP-ID  :  WPS3114

学科分类：社会科学、人文和艺术（综合）

来源: World Bank Open Knowledge Repository

【 摘 要 】

The early start of the process of bankrestructuring and privatization in Hungary provides a longerand richer amount of evidence than that available for anyother transition economy. The authors analyze the dynamicsof bank restructuring in Hungary with a focus on the roleplayed by foreign ownership. They explore the performanceover time of foreign-owned Hungarian banks and study theextent to which efficiency gains are affected by the chosenacquisition strategy-strategic acquisition in contrast withinvestment in a newly established bank (greenfieldinvestment)-or by the management style adopted after theacquisition. The authors supplement previous results on theeffects of foreign bank ownership in three ways. First, theyexplicitly consider the time span required for the change ofownership to affect bank performance. Second, the authorsexplore how important the chosen acquisition strategy is forthe success of an acquisition. And third, they study howrelevant the adopted management style is to this end, asproxied by the degree of reliance on foreign management.