Template-Type: ReDIF-Paper 1.0
Author-Name:  Maria Lehner
Author-X-Name-First: Maria
Author-X-Name-Last: Lehner
Author-Name:  Monika Schnitzer
Author-X-Name-First: Monika
Author-X-Name-Last: Schnitzer

Title:  Entry of Foreign Banks and their Impact on Host Countries
Abstract: Foreign bank entry is frequently associated with spillover e¤ects for local
banks and increasing competition in the local banking market. We study
the impact of these e¤ects on host countries. In particular, we ask how
these e¤ects interact and how they depend on the competitive environment
of the host banking market. An increasing number of banks is more likely to
have positive welfare e¤ects the more competitive the market environment,
whereas spillovers are less likely to have positive welfare e¤ects the stronger
competition. Hence, competitive e¤ects seem to reinforce each other, while
spillovers and competition tend to weaken each other.
Length:  44 pages
Creation-Date:  2006-07
File-URL: http://www.bgpe.de/texte/DP/002_lehner_schnitzer.pdf
File-Format: Application/pdf
File-Function: First version, 2006
Number: 002
Classification-JEL: F37, G21, L13, O16
Keywords: foreign bank entry, multinational bank, competition in banking, spillover effects
Handle: RePEc:bav:wpaper:002_lehner_schnitzer