Privatization, foreign bank entry and bank efficiency in Croatia: a Fourier-flexible function stochastic cost frontier analysis

Denying Foreign Bank Entry:

This paper examines the impact of restricting foreign bank entry on bank net interest margins while controlling for (a) impediments to domestic bank entry, (b) the degree of foreign bank ownership of the domestic banking industry, (c) an array of bankspecific characteristics, (c) banking sector concentration, and (d) various country traits. Using data on almost 1200 banks across 47 countries, t...

Foreign Entry and Bank Competition

Foreign entry and bank competition are modeled as the interaction between asymmetrically informed principals: the entrant uses collateral as a screening device to contest the incumbent’s informational advantage. Both ex ante better information and ex post stronger legal protection are shown to facilitate the entry of low-cost outside competitors into credit markets. The entrant’s success in gai...

Fire Sales, Foreign Entry and Bank Liquidity1

Bank liquidity is a crucial determinant of the severity of banking crises. In this paper, we consider the e¤ect of …re sales and foreign entry on banks’ex ante choice of liquid asset holdings, and the ex post resolution of crises. In a setting with limited pledgeability of risky cash ‡ows and di¤erential expertise between banks and outsiders in employing banking assets, the market for assets cl...

Comparative Analysis of Stochastic Frontier Partially non-parametric and Stochastic Frontier Parametric Methods Case Study: Measuring Cost Efficiency in Wheat Production in Iran

Bank Privatization, Finance, and Growth

This paper examines whether privatizing state-owned banks improves finance and economic growth. To do so, we exploit regional banking variation in Russia induced by the idiosyncratic creation of “specialized banks” in the last years of the Soviet Union (1988-91) that were subsequently privatized. Starting in 1999 private banks including surviving spetsbanks emerged as an important source of ext...