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Foreign Bank Participation in Mexico: A performance analysis for the period 2000-2017

Castellanos Sturemark, Juan Patrik LU (2018) EKHS21 20181
Department 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)
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author
Castellanos Sturemark, Juan Patrik LU
supervisor
organization
course
EKHS21 20181
year
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}},
}