Foreign Bank Participation in Mexico: A performance analysis for the period 2000-2017
(2018) EKHS21 20181Department of Economic History
- Abstract
- Many economists agree that financial development and economic growth have a positive relationship, that financial structures have been critical for many countries to achieve modern economic growth. In the past decades, foreign investment has become more widespread in the entrepreneurial world, and the banking sector has not been an exception. Mexico experimented during the late 1990’s an unprecedented case of foreign investment in its banking sector that triggered many discussions regarding its consequences to financial development and economic growth. Several investigations were performed around the topic, and most of the conclusions suggest that bank performance declined after foreign bank participation. Nonetheless, previous studies... (More)
- Many economists agree that financial development and economic growth have a positive relationship, that financial structures have been critical for many countries to achieve modern economic growth. In the past decades, foreign investment has become more widespread in the entrepreneurial world, and the banking sector has not been an exception. Mexico experimented during the late 1990’s an unprecedented case of foreign investment in its banking sector that triggered many discussions regarding its consequences to financial development and economic growth. Several investigations were performed around the topic, and most of the conclusions suggest that bank performance declined after foreign bank participation. Nonetheless, previous studies were performed for a period in which the financial market conditions might not have been the appropriate ones since the country had recently experienced a financial crisis. Throughout this paper, research using similar procedures as previous ones but with recent data is presented and discussed. The outcome denotes that the overall performance of foreign banks in Mexico did not decline. Additionally, the evidence bestows that there are many similarities between foreign and domestic bank performance trends, suggesting that the origin of a bank’s ownership has not been determinant for different patterns of behavior. (Less)
Please use this url to cite or link to this publication:
http://lup.lub.lu.se/student-papers/record/8951239
- author
- Castellanos Sturemark, Juan Patrik LU
- supervisor
-
- Håkan Lobell LU
- organization
- course
- EKHS21 20181
- year
- 2018
- type
- H1 - Master's Degree (One Year)
- subject
- keywords
- Bank performance, financial depth, financial development, financial globalization, financial outreach, financial productivity, foreign banks, Mexican banks
- language
- English
- id
- 8951239
- date added to LUP
- 2018-08-20 14:44:22
- date last changed
- 2018-08-20 14:44:22
@misc{8951239, abstract = {{Many economists agree that financial development and economic growth have a positive relationship, that financial structures have been critical for many countries to achieve modern economic growth. In the past decades, foreign investment has become more widespread in the entrepreneurial world, and the banking sector has not been an exception. Mexico experimented during the late 1990’s an unprecedented case of foreign investment in its banking sector that triggered many discussions regarding its consequences to financial development and economic growth. Several investigations were performed around the topic, and most of the conclusions suggest that bank performance declined after foreign bank participation. Nonetheless, previous studies were performed for a period in which the financial market conditions might not have been the appropriate ones since the country had recently experienced a financial crisis. Throughout this paper, research using similar procedures as previous ones but with recent data is presented and discussed. The outcome denotes that the overall performance of foreign banks in Mexico did not decline. Additionally, the evidence bestows that there are many similarities between foreign and domestic bank performance trends, suggesting that the origin of a bank’s ownership has not been determinant for different patterns of behavior.}}, author = {{Castellanos Sturemark, Juan Patrik}}, language = {{eng}}, note = {{Student Paper}}, title = {{Foreign Bank Participation in Mexico: A performance analysis for the period 2000-2017}}, year = {{2018}}, }