Foreign Bank Participation and Outreach : Evidence from Mexico

Recently, developing countries have witnessed a sharp increase in foreign bank participation. We examine the impact on banking outreach using newly gathered data for Mexico, where foreign bank participation rose from 2% to 83% of assets during 1997-2005. Country-, bank-, and bank-municipality-level estimations show a decline in the number of deposit and loan accounts. While country- and bank-level estimations indicate an increase in the share of municipalities with bank branches and in the likelihood of bank presence, bank-municipality regressions show that only rich and urban municipalities benefited. Overall, the evidence is consistent with a decline in outreach.

Bibliographic Details

Main Authors:	Beck, Thorsten, Martinez Peria, Maria Soledad
Format:	Journal Article biblioteca
Language:	EN
Published:	2010
Subjects:	Multinational Firms, International Business F230, Banks, Other Depository Institutions, Micro Finance Institutions, Mortgages G210, Economic Development: Financial Markets, Saving and Capital Investment, Corporate Finance and Governance O160, Economic Development: Regional, Urban, and Rural Analyses, Transportation O180,
Online Access:	http://hdl.handle.net/10986/5386
Tags:	Add Tag No Tags, Be the first to tag this record!