Rethinking regulation: international banks in Asian emerging markets
DOI:
https://doi.org/10.13133/2037-3643/9411Keywords:
Keywords, Finance, Regulation, Emerging Markets, AsiaAbstract
Financial systems in Asian emerging market economies are seen as resilient because of their performance during and after the 2008 crisis. But such assessments focus on the current status rather than the direction of evolution of those systems, many of which are being substantially liberalised. One consequence is the growing presence of foreign banks in these markets, invited on the grounds that they would enhance competition and induce domestic banking systems to adopt better technologies and practices. By contrast, it is here maintained that what they are likely to do is alter banking behaviour in ways that are inimical to growth and inclusion and increase instability.
JEL Codes: F23, G15, G21, G28
References
BANK FOR INTERNATIONAL SETTLEMENTS (1997), “BIS reporting banks: summary of international positions”, BIS Quarterly Review: International Banking and Financial Market Developments, November, pp. A1-A2.
BANK FOR INTERNATIONAL SETTLEMENTS (2007), “BIS reporting banks: summary of international positions”, BIS Quarterly Review: International Banking and Financial Market Developments, December, pp. A7-A8.
BATTILOSSI S. (2000), “Financial innovation and the golden ages of international banking: 1890-1931 and 1958-81”, Financial History Review, vol. 7, pp. 141-175.
COMMITTEE ON THE GLOBAL FINANCIAL SYSTEM (2004), Foreign direct investment in the financial sector of emerging market economies, Basel: Bank for International Settlements.
COMMITTEE ON THE GLOBAL FINANCIAL SYSTEM (2010), “Long-term issues in international banking”, CGFS Papers, n. 41, Basel: Bank for International Settlements.
DEUTSCH A. and GUERRERA F. (2011), “Citi barred from new Indonesia accounts”, Financial Times, April 6.
DYMSKI G. (2004), Credit rationing and social exclusion in the age of financial globalization, paper presented at the “Conference on development in open economies: the current perspective” held at New Delhi and organized by UNCTAD and Jamia Millia Islamia, April.
FRY M.J. (1988), Money, interest, and banking in economic development, London: The Johns Hopkins University Press.
HERMAN K. and RAI K. (2010), “The global credit crunch and foreign banks’ lending to emerging markets: why did Latin America fare better?”, IMF Working Paper, n. WP/10/102, Washington (DC): International Monetary Fund.
INTERNATIONAL MONETARY FUND (2007), Global financial stability report: market developments and issues, Washington (DC): International Monetary Fund.
JUNG-A S. (2010), “Foreign banks under fire in South Korea”, Financial Times, October 29.
KPMG INTERNATIONAL (2011), Bruised but not broken: the global banking growth agenda.
MIHALJEK D. (2010), “Domestic bank intermediation in emerging market economies during the crisis: locally owned versus foreign-owned banks”, in Bank of International Settlements (ed.), “The global crisis and financial intermediation in emerging market economies”, BIS Papers, n. 54, Basel: Bank for International Settlements.
MILO M.S. (2002), “Deregulation of bank entry and branching: the impact on competition”, Philippine Institute of Development Studies Discussion Paper Series, n. 2001-27, Makati City: PIDS.
MONTGOMERY H. (2003), “The role of foreign banks in post-crisis Asia: the importance of method of entry”, ADB Institute Research Paper Series, n. 51, Tokyo: ADBI.
RASHID H. (2011), “Credit to private sector, interest spread and volatility in credit-flows: do bank ownership and deposits matter?”, DESA Working Paper, n. 105, ST/ESA/2011/DWP/105, New York: United Nations, Department of Economic and Social Affairs.
RAVAL A. (2011), “Fraud probe at Citibank branch in India”. Financial Times, January 5.
REDDY Y.V. (2011), Global crisis, recession and uneven recovery, Hyderabad: Orient Blackswan.
RESERVE BANK OF INDIA (2011), Notification on regulatory and audit compliance, Ref.DBS.ARS.BC., n. 07/08.91.020/2010-11, May 25, Mumbai: Rbi.
SENDER H. and DEUTSCH A. (2011), “Indonesia eyes ownership limits for banks”, Financial Times, August 3.
STANDARD & POOR’S (2008), “Slower economic growth poses turbulence but no crisis for Asian banking systems”, Ratings Direct, September.
Downloads
Published
How to Cite
Issue
Section
License
