Impact of Foreign Bank Entry on SME Credit in the Indonesian Banking Sector

2018 ◽  
Vol 35 (1) ◽  
pp. 50-78 ◽  
Author(s):  
Miki Hamada ◽  
Keyword(s):  
Banking Sector ◽  
Foreign Bank ◽  
Foreign Bank Entry ◽  
Bank Entry

scholarly journals Examining the Development of Banking Sector Regulations and Supervision Practices across BRICS and G7 Countries

Complexity ◽  
2021 ◽  
Vol 2021 ◽  
pp. 1-16
Author(s):  
Alam Ahmad ◽  
Asif Khan ◽  
Samreen Akhtar ◽  
Hafiz Wasim Akram
Keyword(s):  
Deposit Insurance ◽  
Banking Sector ◽  
Foreign Bank ◽  
Moral Hazards ◽  
Brics Countries ◽  
Foreign Bank Entry ◽  
Bank Regulation And Supervision ◽  
Insurance Mechanism ◽  
Customer Welfare ◽  
Bank Entry

The study examines the development in the banking regulatory practices across BRICS nations over the period 2000–2019. The convergence and sustainability of the regulatory framework in BRICS nations to G7 norms have also been assessed. The analysis is based on five key regulatory measures, which include activity restrictions, entry requirements for a new bank, foreign bank entry restrictions, capital stringency, and deposit insurer powers. The study constructs the regulatory indexes based on the central bank responses to the Bank Regulation and Supervision Survey (BRSS) conducted by the World Bank. To estimate the indexes, the study follows Barth, Caprio, and Levine guidelines. The result reveals that the regulators of BRICS countries impose higher restrictions on bank activities than in the G7 nations. Furthermore, the United Kingdom and Brazilian bank regulators are more liberal and imposed fewer restrictions on insurance activity only. In addition, getting a bank license is tough in both regions. Regulators allow only fit and proper applicants into the banking domain. Furthermore, the authors find that the requirements for capital are becoming more restricted in BRICS nations between 2003 and 2019 to align with Basel capital accords, relative to G7 nations. The study documents a convergence in the banking licensing requirements, and limitations on foreign bank entry and official supervisory powers in the BRICS countries with the G7 nations. The study suggests that the regulators must offer freedom to banks’ activities with increasing supervision, and it boosts the competition in the banking sector and enhances customer welfare. Furthermore, the policymakers need to redesign the deposit insurance mechanism and equip deposit insurers with more powers to enhance the safety of depositors’ interests and minimize the moral hazards in the banking sector in both regions.

scholarly journals Analysis of effects of foreign bank entry on credit interest rate behavior in Serbia

2007 ◽  
Vol 54 (4) ◽  
pp. 429-443 ◽  
Author(s):  
Djordje Djukic
Keyword(s):  
Interest Rates ◽  
Banking Sector ◽  
Reference Group ◽  
Foreign Bank ◽  
Mortgage Loan ◽  
Reserve Requirements ◽  
Inelastic Demand ◽  
Foreign Bank Entry ◽  
National Bank ◽  
Bank Entry

Following foreign bank entry, credit interest rates have been extremely high in Serbia compared with a reference group of countries: Croatia, Bulgaria and Romania. This is connected with monetary authorities' poor predictions regarding the behavior of those banks in setting interest rates, creating an illusion that competition, per se, would rapidly result in decreasing interest rates; as well as undertaking monetary policy measures-such as an extreme increase in the reserve requirements rate-that contributed to unchanged or increased credit interest rates. The final outcome of poor predictions and measures undertaken by the National Bank of Serbia is limited to periodical appeals by its highest officials to citizens to consider the conditions under which they borrow from banks. However, under conditions of fully inelastic demand for bank credit and a cartel presence in the banking sector, such appeals are ineffective, merely reflecting an attempt to avoid responsibility for a possible wave of bankruptcies in the household sector. Only increasing competition among banks can lead to a significant decrease in credit interest rates in Serbia in the medium term. Empirical analysis shows that competition should be most intensive on the mortgage loan market.

The Effects of Foreign Bank Entry on the Productivity of Chinese Banks

2017 ◽  
Vol 35 (3) ◽  
pp. 23-42
Author(s):  
Ran Cheng ◽  
Chao Wu ◽  
Keun-Yeob Oh
Keyword(s):  
Foreign Bank ◽  
Foreign Bank Entry ◽  
Chinese Banks ◽  
Bank Entry

Impact of Foreign Bank Entry on the Performance of Chinese Banks

2009 ◽  
Vol 17 (3) ◽  
pp. 102-121 ◽  
Author(s):  
Chung-Hua Shen ◽  
Chin-Hwa Lu ◽  
Meng-Wen Wu
Keyword(s):  
Foreign Bank ◽  
Foreign Bank Entry ◽  
Chinese Banks ◽  
Bank Entry

scholarly journals Foreign Bank Entry and Credit Allocation in Emerging Markets

2009 ◽  
Author(s):  
Hans Degryse ◽  
Olena Havrylchyk ◽  
Emilia Magdalena Jurzyk ◽  
Sylwester J. Kozak
Keyword(s):  
Emerging Markets ◽  
Foreign Bank ◽  
Credit Allocation ◽  
Foreign Bank Entry ◽  
Bank Entry
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