Foreign bank participation in transition economies: the effects on access to credit

• Thesis title in Czech: Participace zahraničních bank v tranzitivních ekonomikách:; dopady na dostupnost úvěrů
• Thesis title in English: Foreign bank participation in transition economies:; the effects on access to credit
• Key words: zahraniční banky, dostupnost úvěrů, tranzitivní ekonomiky
• English key words: foreign banks, credit availability, transition economies
• Academic year of topic announcement: 2010/2011
• Thesis type: rigorosum thesis
• Thesis language: angličtina
• Department: Institute of Economic Studies (23-IES)
• Supervisor: doc. PhDr. Adam Geršl, Ph.D.
• Author: hidden - assigned by the advisor
• Date of registration: 07.02.2011
• Date of assignment: 07.02.2011
• Date and time of defence: 30.03.2011 15:00
• Venue of defence: IES
• Date of electronic submission: 14.02.2011
• Date of proceeded defence: 30.03.2011
• Opponents: PhDr. Mgr. Katarína Marková

References

Clarke, G. R., Cull, R. and Martinez Peria, M. S., 2006., “Foreign bank participation and access to credit across firms in developing countries“, Journal of Comparative Economics 34(4), 774-795

Detragiache, Enrica, Poonam Gupta, and Thierry Tressel, 2006, “Foreign Banks in Poor Countries: Theory and Evidence,” IMF Working Papers 06/18 (Washington: International Monetary Fund).

Weill, L., 2003. “Banking efficiency in transition economies: The role of foreign ownership.” Economics of Transition 11, 569–592

Volz, U. (2004) “European financial integration and the financing of local businesses in the new EU member states.” European Bank for Reconstruction and Development Working Paper No. 89, EBRD, London.

Sapienza, Paola, 2004, "The effects of government ownership on bank lending" Journal of FinancialEconomics 72, 357-384.

Peek, Joe, Rosengren, Eric, 2000. “Implications of the globalization of the banking sector: The Latin American experience.” Federal Reserve Bank of Boston New England Economic Review (Sept.–Oct.), 45–62.

Haber, Stephen, Musacchio, Aldo, 2005. “Foreign banks and the Mexican economy, 1997–2004.” Mimeo. Stanford University

Focarelli, D. and A. Pozzolo, 2000, “The Determinants of Cross-Border Shareholding: An Analysis with Bank-Level Data from OECD Countries.” Paper presented at the Federal Reserve Bank of Chicago Bank Structure Conference, May.

DeYoung, R. and D. E. Nolle, 1996 “Foreign-owned banks in the United States: Earning Market Share of Buying it?” Journal of Money, Credit, and Banking, 28(4), (Part 1, Nov. 1996), 622-36.

de Haas, Ralph, and Naaborg, Ilko, 2005. “Does Foreign Bank Entry Reduce Small Firms Access to Credit? Evidence from European Transition Economies.” De Nederlandsche Bank Working Paper No. 50, August 2005

Preliminary scope of work

Rigorózní práce se zabývá tématem přítomnosti zahraničních bank v tranzitivních ekonomikách. První část prezentuje teoretické hypotézy týkající se vstupu zahraničních bank a příslušnou empirickou evidenci. Dále se práce zaměřuje především na empirické testování vztahu mezi dostupností úvěrů a mírou účasti zahraničních bank v tranzitivních ekonomikách. Analýza, která je založena na datech z průzkumu provedeného mezi firmami z 38 zemí, přináší zajímavé výsledky. Odhady naznačují, že země s větším podílem zahraničních bank mají lepší podmínky pro získání úvěru v regionu střední a východní Evropy. Naproti tomu, ekonomiky Společnosti nezávislých států s větší účastí zahraničních bank, hodnotí dostupnost úvěrů hůře. Analýza dále ukazuje, že velikost podniku, typ vlastnictví a sektor, v němž působí, jsou významnými faktory, které určují vliv zahraničních bank na jejich financování. Na závěr jsme ukázali, že podíl státních bank v ekonomice a efektivita domácího bankovního sektoru jsou dalšími proměnnými, které ovlivňují dostupnost úvěrů.

Preliminary scope of work in English

The thesis discusses the topic of foreign bank participation in transition economies. First part presents theoretical considerations about foreign bank entry and their empirical support. The main focus is then on the empirical investigation of the possible relation between the degree of foreign bank participation and the availability of credit across transition countries. Combining responses from a survey of firms operating in 38 transition economies with data on the degree of foreign bank participation, we derived some interesting conclusions. The analysis suggests that conditions for obtaining credit seem to be better in economies having higher share of foreign banks within countries of Central and Eastern Europe. The opposite conclusion was derived for countries of Commonwealth of Independent States; there economies with higher foreign presence tend to perceive conditions of financing as more problematic. Moreover, it was shown that enterprise size, its ownership and sector within which operates also matter when drawing conclusions on the effects on foreign bank on the availability of credit. Additionally, we identified that the share of state-owned banks and the effectiveness of domestic banking sector are other determinants of credit accessibility.