Bank Ownership : Trends and Implications

Author/Editor:

Robert Cull ; Maria Soledad Martinez Peria ; Jeanne Verrier

Publication Date:

March 22, 2017

Electronic Access:

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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.

Series:

Working Paper No. 17/60

Subject:

English

Publication Date:

March 22, 2017

ISBN/ISSN:

9781475588125/1018-5941

Stock No:

WPIEA2017060

Format:

Paper

Pages:

49

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