Are Foreign Banks Better Performers Than Domestic Counterparts? Examining the Financialization Hypothesis in Mexico

dc.authorscopusid55788668700
dc.authorscopusid57132353800
dc.contributor.authorDoyran, M.A.
dc.contributor.authorErdoğan, E.
dc.date.accessioned2024-07-18T20:16:58Z
dc.date.available2024-07-18T20:16:58Z
dc.date.issued2015
dc.description.abstractThis 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.en_US
dc.description.sponsorshipASCRS Research Foundation; City University of New York, CUNY: 67788-00 45en_US
dc.description.sponsorshipWe are also thankful to the Research Foundation of the PSC-CUNY Research Award Program of the City University of New York (CUNY) for its support. The grants that gave support to this scholarly work are PSC-CUNY45-193 Research Award (# 67788-00 45), April 2014. All remaining error sare of the authors.en_US
dc.identifier.doi10.1080/10978526.2015.1115730
dc.identifier.endpage370en_US
dc.identifier.issn1097-8526
dc.identifier.issue4en_US
dc.identifier.scopus2-s2.0-84958955420en_US
dc.identifier.scopusqualityQ3en_US
dc.identifier.startpage327en_US
dc.identifier.urihttps://doi.org/10.1080/10978526.2015.1115730
dc.identifier.urihttps://hdl.handle.net/11411/6338
dc.identifier.volume16en_US
dc.indekslendigikaynakScopusen_US
dc.language.isoenen_US
dc.publisherRoutledgeen_US
dc.relation.ispartofLatin American Business Reviewen_US
dc.relation.publicationcategoryMakale - Uluslararası Hakemli Dergi - Kurum Öğretim Elemanıen_US
dc.rightsinfo:eu-repo/semantics/closedAccessen_US
dc.subjectBanking And Economic Developmenten_US
dc.subjectFinancial Sector İn Emerging Marketsen_US
dc.subjectFinancialization Hypothesisen_US
dc.subjectForeign Banks İn Latin Americaen_US
dc.subjectProductive Financeen_US
dc.titleAre Foreign Banks Better Performers Than Domestic Counterparts? Examining the Financialization Hypothesis in Mexico
dc.typeArticle

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