Empirical evidence on the relationships between concentration and profitability in Latin American banking

Arize, Augustine C. and Kallianotis, Ioannis N. and Kasibhatla, Krishna M. and Malindretos, John and Rivera-Solis, Luis Eduardo (2008): Empirical evidence on the relationships between concentration and profitability in Latin American banking. Published in: American Business Review , Vol. Vol.XX, No. No.1 (January 2010): pp. 87-96.

Abstract

There has been growth in globalization as a result of increased liberalization. This has also resulted in an increase in the role of financial institutions, such as banks. It is the purpose of this study to test Classen’s (2001) hypothesis that increase foreign bank presence has positive welfare implications and that the functioning of national banking markets are improved as a result. Using financial data for 2003 this paper will examine the influence of foreign bank entry on Latin American domestic markets.

• Item Type: MPRA Paper
• Language: English
• Keywords: Latin American banking; Concentration and Profitability; Foreign Bank Influence
• Subjects: L - Industrial Organization > L2 - Firm Objectives, Organization, and Behavior > L25 - Firm Performance: Size, Diversification, and Scope; G - Financial Economics > G1 - General Financial Markets > G15 - International Financial Markets; D - Microeconomics > D4 - Market Structure, Pricing, and Design > D43 - Oligopoly and Other Forms of Market Imperfection; F - International Economics > F3 - International Finance > F39 - Other

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