Foreign Banks in Emerging Market Crises: Evidence from Malaysia

By E. Detragiache, Poonam Gupta. Social Science Research Network, 2004

169 citations recorded by the source corpus.

Foreign banks have greatly increased their presence in emerging market countries in recent years. This paper compares the performance of domestic banks and a long-established group of foreign banks during the recent crisis in Malaysia. We find that the sharpest differences are between banks mainly active in Asia (including all domestic and some foreign banks) and foreign banks not specialized in Asia. The latter group performed better than the rest during the crisis, maintaining higher profitability thanks to higher interest margins and lower non-performing loans. Foreign banks did not abandon the local market during the crisis and received less government support than domestic institutions.

Subfields: Accounting, Finance

View Paper: https://www.semanticscholar.org/paper/4f5f1291b7562c9486907d8cb4991f732b3c97fa

How researchers see this paper

The researchers whose trusted networks rank it highest, strongest advocate first. Every researcher gets a different order.

In Accounting

In Finance

Citations in the corpus

Cross-Country Empirical Studies of Systemic Bank Distress: A Survey (2005, background): “Applying the monitoring frameworks to six crisis episodes (Jamaica, Indonesia, Korea, Malaysia, Philippines and Thailand) shows that, while both actual and forecasted data would have indicated high vulnerability in Jamaica, the picture would have been much rosier for the Asian countries (see table 3”
The Real Effect of Banking Crises (2005, background): “In a study of the Malaysian crisis of 1997–1998, Detragiache and Gupta (2006) find that foreign banks from outside the region performed better than domestic banks or foreign banks with a regional focus.”
Foreign bank participation and access to credit across firms in developing countries (2006, background): “Demirgüç-Kunt et al. (1998), Dages et al. (2000), Goldberg (2002), Peek and Rosengren (2000), Barth et al. (2001), de Haas and van Lelyveld (2003), and Detragiache and Gupta (2004) analyze the consequences of foreign bank participation on the stability of the banking sector in host countries.”
Competition and risk in South East Asian commercial banking (2012, background): “11 These include Chou (2000), Montreevat (2000), Tschoegl (2001, 2003), Chua (2003), Coppel and Davies (2003), Focaralli (2003), Bekaert and Harvey (2004), Detragiache and Gupta (2004), Megginson (2005).”
The mix of international banks' foreign claims: Determinants and implications (2005, unknown): “Dages et al. (2000), Detragiache and Gupta (2004), Peek and Rosengren (2000), de Haas and Levyveld (2002, 2004) compare the lending behavior of foreign and domestic banks during crises.”