Do foreign bank operations provide a stabilizing influence in Korea?

Jeon, Yongil; Miller, Stephen M.; Natke, Paul A.

doi:10.1016/j.qref.2004.06.006

Cited by 17 publications

(12 citation statements)

References 19 publications

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“…The authors find that foreign banks did not contribute significant volatility to the financial system during the Asian crisis; however, their lending reacted to changing economic conditions in their home country economies. Jeon et al (2006) also demonstrate that foreign bank operations' contribution to financial market stability in South Korea depends on the extent of financial market integration between South Korea and the home country.…”

Section: Motivation and Existing Literaturementioning

confidence: 80%

“…The evidence for the reduced procyclicality of foreign banks, however, is ambiguous. Jeon et al (2006) document that, like domestic banks, foreign banks were procyclical lenders in South Korea during the 1997 crisis. The authors find that foreign banks did not contribute significant volatility to the financial system during the Asian crisis; however, their lending reacted to changing economic conditions in their home country economies.…”

Section: Motivation and Existing Literaturementioning

confidence: 99%

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Bank lending, crises, and changing ownership structure in Central and Eastern European countries

Allen

Jackowicz

Kowalewski

et al. 2017

Journal of Corporate Finance

107

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We examine the interactions of bank lending dynamics, ownership structures, and crisis phenomena in the banking systems of Central and Eastern European (CEE) countries. Using a panel dataset of more than 400 banks for the period from 1994–2010, we show that the impact of ownership structure on a bank’s lending activities in CEE countries was conditional upon the type of crisis, namely, whether it was a host, home, global, or simultaneous crisis. In contrast, our evidence indicates that bank-specific characteristics, such as deposit growth and profitability ratios, are significant determinants of credit growth during both normal economic times and crisis periods, regardless of the crisis type. Moreover, we provide indirect evidence of the benefits of banking sector diversification dependent upon the criterion of parent banks’ country of origin

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Section: Motivation and Existing Literaturementioning

confidence: 80%

Section: Motivation and Existing Literaturementioning

confidence: 99%

Bank lending, crises, and changing ownership structure in Central and Eastern European countries

Allen

Jackowicz

Kowalewski

et al. 2017

Journal of Corporate Finance

107

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show abstract

“…The empirical findings indicate that the Korean banking sector exhibits productivity growth attributed to technical progress which outweighs declines in efficiency. Other studies like , Jeon et al (2006), Choi and Hasan (2005), and Choe and Lee (2003) among others investigate the impact of ownership and corporate governance on the performance of Korean banks.…”

Section: Review Of the Literaturementioning

confidence: 99%

Asian Financial Crisis and the Evolution of Korean Banks Efficiency: A DEA Approach

Sufian

Habibullah

2009

Global Economic Review

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In the mid-1990s, the East Asian countries experienced severe financial crisis that were followed by deep economic downturns. A variety of methodologies have been used to understand the nature of the Asian financial crisis. However, the impact of the 1997 Asian financial crisis on the efficiency of the financial industry has yet to be critically examined. By employing the Data Envelopment Analysis (DEA) approach the present study attempts to examine for the first time the impact of the 1997 Asian financial crisis on the efficiency of the Korean banking sector. The study focuses on three major approaches, namely, intermediation, value added, and operating approaches. The results clearly bring forth the high degree of inefficiency in the Korean banking sector, particularly a year after the Asian financial crisis. We find that the Korean banking sector has consistently exhibit higher technical efficiency levels under value added approach, while technical efficiency seems to be lowest under intermediation approach.Financial crisis, bank efficiency, data envelopment analysis, panel regression analysis, Korea,

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“…To pursue such issues goes beyond the intent of the current paper. Jeon, Natke, and Miller (2002) address those issues.…”

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confidence: 98%

Performance of Domestic and Foreign Banks: The Case of Korea and the Asian Financial Crisis

Jeon

Miller

2005

Global Economic Review

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This paper considers the performance of banks, domestic and foreign, in Korea prior to, during, and immediately after the Asian financial crisis, examining how the profitability of those banks differed and identifying factors that explain why those differences existed. The performance of Korean banks deteriorated dramatically in 1998 with most banks recovering somewhat in 1999. Foreign banks did not experience the same negative effect on their returns on assets and equity as a rule. Several standard findings emerge. For example, equity to assets correlates positively with domestic, but not foreign, bank performance, as measured by the returns on assets and equity, even when the government recapitalized institutions that were performing quite badly. Also, foreign-currency deposits significantly and negatively correlate with domestic Korean bank performance, although only in the post-crisis period for regional banks. In sum, the domestic Korean banks suffered more severely from the Asian financial crisis than foreign banks.Journal of Economic Literature Classification: E44, G21, O16, O53

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Do foreign bank operations provide a stabilizing influence in Korea?

Cited by 17 publications

References 19 publications

Bank lending, crises, and changing ownership structure in Central and Eastern European countries

Bank lending, crises, and changing ownership structure in Central and Eastern European countries

Asian Financial Crisis and the Evolution of Korean Banks Efficiency: A DEA Approach

Performance of Domestic and Foreign Banks: The Case of Korea and the Asian Financial Crisis

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