Foreign Banks in Emerging Market Crises: Evidence from Malaysia

WPIEA1292004 Image
Price:  $15.00

Author/Editor: Enrica Detragiache, Poonam Gupta
Release Date: © July, 2004
ISBN : 978-1-45185-514-2
Stock #: WPIEA1292004
English
Stock Status: Available

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Description

Foreign banks have greatly increased their presence in emerging market countries in recent years. This paper compares the performance of domestic banks and a long-established group of foreign banks during the recent crisis in Malaysia. We find that the sharpest differences are between banks mainly active in Asia (including all domestic and some foreign banks) and foreign banks not specialized in Asia. The latter group performed better than the rest during the crisis, maintaining higher profitability thanks to higher interest margins and lower nonperforming loans. Foreign banks did not abandon the local market during the crisis and received less government support than domestic institutions.

Taxonomy

Financial crisis , International financial system




More publications in this series: Working Papers


More publications by: Enrica Detragiache ; Poonam Gupta