Article ID | Journal | Published Year | Pages | File Type |
---|---|---|---|---|
960781 | Journal of Financial Intermediation | 2010 | 22 Pages |
Abstract
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.
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Authors
Thorsten Beck, Maria Soledad Martinez Peria,