banking and economic development
Ağustos 18, 2020
From the early 1990s until 1998, Argentina liberalised its banking system as part of a strategy to enter a globalised economy. The subsequent monetary policies, combined with ‘convertibilidad’ and an elevated government debt, led to a loss of confidence in the financial system, ending in the deep recession of 1998–2002. A sovereign debt default of $100 billion in December 2001 followed, and in January 2002 the fixed exchange regime was officially abandoned. This paper examines how firm-specific characteristics and the […]
Ağustos 18, 2020
This article analyzes the relationship between “financialization” and the performance of credit institutions in Mexico over the period 1999–2013. On average, foreign banks have higher cost-to-income ratio and return on assets than domestically owned banks. Non-interest income to gross revenue positively contributes to foreign bank profits, which highlights income other than conventional banking transactions. When considering references in the literature to non-interest income as a proxy for financialization, our results imply that domestic banks are more dependent on traditional lending, […]