IMF Working Papers

Bank Ownership: Trends and Implications

By Robert Cull, Maria Soledad Martinez Peria, Jeanne Verrier

March 22, 2017

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Robert Cull, Maria Soledad Martinez Peria, and Jeanne Verrier. Bank Ownership: Trends and Implications, (USA: International Monetary Fund, 2017) accessed November 12, 2024

Disclaimer: IMF Working Papers describe research in progress by the author(s) and are published to elicit comments and to encourage debate. The views expressed in IMF Working Papers are those of the author(s) and do not necessarily represent the views of the IMF, its Executive Board, or IMF management.

Summary

This paper presents recent trends in bank ownership across countries and summarizes the evidence regarding the implications of bank ownership structure for bank performance and competition, financial stability, and access to finance. The evidence reviewed suggests that foreign-owned banks are more efficient than domestic banks in developing countries, promote competition in host banking sectors, and help stabilize credit when host countries face idiosyncratic shocks. But there are tradeoffs, since foreign-owned banks can transmit external shocks and might not always expand access to credit. The record on the impact of government bank ownership suggests few benefits, especially for developing countries.

Subject: Bank credit, Banking, Commercial banks, Competition, Credit, Financial institutions, Financial markets, Foreign banks, Money

Keywords: Bank credit, Bank governance, Bank ownership, Bank participation, Bank share, Central and Eastern Europe, Central Asia, Commercial banks, Competition, Credit, Eastern Europe, Financial globalization, Foreign bank, Foreign banks, Global, Government bank lending, Government bank participation, Government ownership, Government-owned bank, Ownership structure, Privatization, South Asia, State-owned banks, WP

Publication Details

  • Pages:

    49

  • Volume:

    ---

  • DOI:

    ---

  • Issue:

    ---

  • Series:

    Working Paper No. 2017/060

  • Stock No:

    WPIEA2017060

  • ISBN:

    9781475588125

  • ISSN:

    1018-5941

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