Do foreign banks lend less to small and medium enterprises than domestic banks in developing countries? Analysis of data from four countries in Latin America suggests that although small foreign banks lend less than small domestic banks, the difference for large banks is considerably less. In...

Foreign banks are playing an increasingly large role in many developing countries, holding more than 50 percent of banking assets in several of these countries. But important issues about foreign bank entry continue to be debated.In recent years foreign bank participation has increased...

In recent years foreign banks have expanded their presence significantly in several developing economies. In Argentina and Chile in Latin America and in the Czech Republic, Hungary, and Poland in Eastern Europe, foreign-controlled banks now hold more than half of total banking assets. In other...

How does entry by foreign banks affect lending to small and medium-size enterprises in developing countries? Analysis of data from a large cross-country survey of enterprises finds that foreign bank entry benefits firms of all sizes, although it seems to benefit larger firms more.Existing...

This paper describes the recent trends in foreign bank ownership in developing countries, summarizes the existing evidence on the causes and implications of foreign bank presence, and reexamines the link between banking crises and foreign bank participation. Using data on the share of banking...

This paper studies the factors banks perceive as drivers and obstacles to financing small and medium enterprises (SMEs), focusing on the role of competition and the institutional framework. Using a survey of banks in Argentina and Chile, the paper shows that, despite alleged differences in the...

Using data from a survey of 91 banks in 45 countries, the authors characterize bank financing to small and medium enterprises (SMEs) around the world. They find that banks perceive the SME segment to be highly profitable, but perceive macroeconomic instability in developing countries and...

The conventional wisdom in academic and policy circles argues that, while large and foreign banks are generally not interested in serving SMEs, small and niche banks have an advantage in doing so because they can overcome SME opaqueness through relationship lending. This paper shows that there...

Recently, developing countries have witnessed a sharp increase in foreign bank participation. The authors examine the impact on banking outreach using newly gathered data for Mexico, where foreign bank participation rose from 2 percent to 83 percent of assets during 1997-2005. Country-, bank-,...

Using information from 193 banks in 58 countries, the authors develop and analyze indicators of physical access, affordability, and eligibility barriers to deposit, loan, and payment services. They find substantial cross-country variation in barriers to banking and show that in many countries...