Are Foreign Banks Better Performers Than Domestic Counterparts? Examining the Financialization Hypothesis in Mexico
Küçük Resim Yok
Tarih
2015
Yazarlar
Dergi Başlığı
Dergi ISSN
Cilt Başlığı
Yayıncı
Routledge
Erişim Hakkı
info:eu-repo/semantics/closedAccess
Özet
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, such as interest-earning assets, whereas foreign banks seem to engage in greater diversification to support profitability. Overall, the banking system reveals tendencies (“financialization”) that can possibly work against credit facilitation in Mexico. © 2015, Copyright © Taylor & Francis Group, LLC.
Açıklama
Anahtar Kelimeler
Banking And Economic Development, Financial Sector İn Emerging Markets, Financialization Hypothesis, Foreign Banks İn Latin America, Productive Finance
Kaynak
Latin American Business Review
WoS Q Değeri
Scopus Q Değeri
Q3
Cilt
16
Sayı
4
