Bank Competition and International Financial Integration: Evidence Using a New Index

Financial dollarization: The role of foreign-owned banks and interest rates

“…That does not necessarily mean that complete capital controls should be in place. Pasricha (2009) shows that not all UIP deviations are arbitrated away due to imperfect competition in the banking sector, asymmetric information and intermediate levels of capital controls. One can then determine a threshold around the rates determined by the UIP condition wherein deviations are persistent.…”

Forecasting the fragility of the banking and insurance sectors

“…Thus, we expect a positive relationship between the distance-to-default value of insurance companies and equity returns. Pasricha (2009) shows that financial market integration can influence the performance of financial firms. A measure of financial openness is the Chinn-Ito index (KA-open), which measures a country's degree of capital account openness (Chinn and Ito, 2008)-a large value indicates low restrictions of cross-border financial transactions.…”