Financial liberalization, market structure and credit penetration

Balmaceda, Felipe; Fischer, Ronald; Ramirez, Felipe

doi:10.1016/j.jfi.2013.08.003

Cited by 17 publications

(9 citation statements)

References 22 publications

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“…Further, our results for advanced countries support the argument put forward by Balmaceda et al. (2014) that financial liberalization can lead to an increase in lending when banking markets are more concentrated.…”

Section: Discussionsupporting

confidence: 90%

“…Further, our results for advanced countries support the argument put forward by Balmaceda et al (2014) that financial liberalization can lead to an increase in lending when banking markets are more concentrated. Moreover, we find that for high income countries, higher degrees of concentration in economies that are completely closed also lower the amount of credit.…”

Section: Discussionsupporting

confidence: 87%

“…At the opposite end, large banks are able to absorb these risks and can be able to provide loans with preferential conditions 5 . In addition, when banking markets are initially highly concentrated, financial liberalization (particularly in the form of foreign bank entry) can lead to the exclusion of smaller (or weaker) businesses from the credit market, while the stronger companies are served by international banks (Balmaceda et al., 2014). In these conditions, each type of bank specializes in the type of firm in which it has a comparative advantage, and this should lead to an increase in efficient lending 6…”

Section: Introductionmentioning

confidence: 99%

“…3 3 Based on the theoretical framework of Balmaceda et al. (2014), Fischer and Valenzuela (2013) provide an empirical investigation into how the relationship between credit market activity and financial openness depends on competition in the banking sector. They find that financial openness positively affects private credit in countries with a competitive banking sector while it disappears and potentially becomes negative in countries with weak competition in the banking sector before financial openness takes place, suggesting that the stage of economic development is irrelevant.…”

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confidence: 99%

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Banking concentration, financial openness, and financial development

Ghossoub,

Harrison,

Reed

2023

Contemporary Economic Policy

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We examine how financial development in the banking sector depends on the degree of capital account openness and the degree of bank concentration across countries. Using data on 136 countries, we find that the relationship of openness to credit market activity depends on the level of economic development. In high income countries, openness is only associated with higher credit market activity in concentrated banking systems. However, in developing countries, there is evidence that openness is associated with higher credit market activity regardless of concentration. Moreover, in contrast to previous work we examine how the impact of concentration depends on openness.

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Section: Discussionsupporting

confidence: 90%

Section: Discussionsupporting

confidence: 87%

Section: Introductionmentioning

confidence: 99%

mentioning

confidence: 99%

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Banking concentration, financial openness, and financial development

Ghossoub,

Harrison,

Reed

2023

Contemporary Economic Policy

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“…One camp holds that credit market liberalization progresses with financial development, citing empirical evidence of its positive effect on growth (Levine, 2005) and even macroeconomic stability (Beck, 2009). Balmaceda et al (2014) find that liberalization can lead to lower domestic interest rates when a given market is competitive. This, in turn, may lead to increased credit penetration.…”

Section: Introduction: Externalities Revisitedmentioning

confidence: 93%

The economic costs of protests and policy recommendations for preventing them: the case of Hong Kong

2021

JCEFTS

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Purpose This paper aims to examine the economic costs of protests at micro-to-firm, market sector and aggregate levels. This paper then develops institutional policy recommendations for allaying these costs. Design/methodology/approach This paper conducts a case study of the anti-extradition bill protests in Hong Kong by examining news articles, online discussions and economic indices from the Hong Kong Census and Statistics Department. This paper further develops policy insights from an analysis of the Hong Kong Basic Law (the city’s mini-constitution) and insights from economic research. Findings This paper discovers that the protests may have caused overall volatility in firms, market sectors and the overall economy, measured in production disruptions, revenue losses and declines in employment. Among Hong Kong’s four major industries, the most severely stunted market sectors were tourism and retail, as well as trading and logistics, whereas financial services and professional and producer services experienced mixed effects. This paper develops two institutional policy recommendations for government and corporate policymaking for reducing volatility and ultimately safeguarding economic growth: the separation of political ideology and economics; the systematic use of public opinion analytics to pre-test the reception of policies. Practical implications Corporate strategists and policymakers would benefit from and advance the economy by better insulating business decision-making from political biases and by investing in public opinion analytics. Originality/value Much of economic theory treats social transformations as externalities. This paper adopts a different approach by foregrounding the role that social transformations play in shaping the economy. To this end, to the best of the author’s knowledge, this paper is among the first to examine the anti-extradition bill protests of Hong Kong, arguably the most significant and widespread protests in the city’s and the region’s history.

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Loan growth, ownership, and regulation in the European Banking Sector: Old versus new banking landscape

Agoraki

Κουρέτας

2021

Journal of International Financial Markets, Institutions and Mo

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Financial liberalization, market structure and credit penetration

Cited by 17 publications

References 22 publications

Banking concentration, financial openness, and financial development

Banking concentration, financial openness, and financial development

The economic costs of protests and policy recommendations for preventing them: the case of Hong Kong

Loan growth, ownership, and regulation in the European Banking Sector: Old versus new banking landscape

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