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Foreign Banks in Poor Countries
			: Theory and Evidence

Foreign Banks in Poor Countries : Theory and Evidence »

Volume/Issue: 2006/18

Series: IMF Working Papers

Author(s): Enrica Detragiache , Poonam Gupta , and Thierry Tressel

Publisher: INTERNATIONAL MONETARY FUND

Publication Date: 01 January 2006

DOI: http://dx.doi.org/10.5089/9781451862782.001

ISBN: 9781451862782

Keywords: Financial development, low-income countries, foreign bank, foreign ownership, domestic banks, Low Income Developing Countries,

We study how foreign bank penetration affects financial sector development in poor countries. A theoretical model shows that when foreign banks are better at monitoring highend customers than domestic banks, their...