Free banking and bank entry in Latin America

Zegarra, Luis Felipe

doi:10.1016/j.ihe.2013.06.013

Cited by 3 publications

(3 citation statements)

References 9 publications

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“…Standard economic theory states that the welfare of borrowers and lenders improves when restrictions to free entry are removed (Besanko and Thakor, 1992;Gobbi and Lotti, 2004). Research on Latin American banking systems has focused on their institutional characteristics and economic volatility (Kasman and Carvallo, 2014;Williams, 2012;Yildirim and Philippatos, 2007;Zegarra, 2013). For example, the privatization of public banks in Latin America that began in the 1990s created a concentration (e.g.…”

Section: Introductionmentioning

confidence: 99%

Cross-border branching in the Latin American banking sector

Fávero

Santos

Serra

2018

IJBM

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Purpose Branching is not the only way for foreign banks to enter a national market, and it is impractical when there are informational and cultural barriers and asymmetries among countries. The purpose of this paper is to analyze the determinants of cross-border branching in the Latin American banking sector, a region with regulatory disparity and political and economic instability, offering elements to a grounded strategic decision. Design/methodology/approach This study uses data from six Latin American countries. To account for the preponderance of zero counts, classes of zero-inflated models are applied (Poisson, negative binomial, and mixed). Model fit indicators obtained from differences between observed and estimated counts are used for comparisons, considering branches in each region established by banks from every other foreign region of the sample. Findings Branching by foreign banks is positively correlated with the population, GDP per capita, household disposable income, and economic freedom score of the host country. The opposite holds for the unemployment rate and entry regulations of the host country. Originality/value Few paper address cross-border banking in emerging economies. This paper analyzes cross-border branching in Latin America in the context of the current financial integration and bank strategy. Econometrically, its pioneering design allows modeling of inflation of zeros, over-dispersion, and the multilevel data structure. This design allowed testing of a novel country-level variable: the host country’s economic freedom score.

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Section: Introductionmentioning

confidence: 99%

Cross-border branching in the Latin American banking sector

Fávero

Santos

Serra

2018

IJBM

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“…La literatura ha documentado una serie de casos entre los que destacan los de Escocia (1716-1844) y Estados Unidos (1837-61) (ver Briones y Rockoff 2005 para una revisión). En América Latina varios países habrían tenido alguna forma de banca libre durante el siglo XIX (Schuler 1992, Zegarra 2013a, 2014), siendo las experiencias mejor estudiadas las de Colombia (Echeverri 1991, Meisel 1992), del Perú (Morón 1993, Zegarra 2013b) y de Chile (Santelices 1893, Espinoza 1909, Millar 1994, Ross 2003, Briones 2004, Jeftanovic y Lüders 2007).…”

Section: Introductionunclassified

Vinculaciones Políticas en Un Régimen De Banca Libre: El Caso De La Crisis Bancaria De 1878 en Chile

Briones

2016

RHE / JILAEH

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In 1878 Chile experienced a banking crisis which brought an end to the Chilean free-banking period based on convertibility initiated in 1860. Using monthly bank balance sheets and other primary sources, I analyze the period and argue that one important explanation for the crisis was the growing relationship between banks and government through state loans to finance fiscal deficits and privileges to the issuing banks. I claim that the crisis emerged from a large bank loan in late 1877 which induced over-issuance and depreciation expectations leading, logically, to a bank run. The Chilean case provides valuable evidence of an element frequently neglected by the free-banking literature: the links between banks and government.

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“…Costa Rica showed an early development of formal credit institutions in the 19th century and early 20th century (Zegarra, 2013(Zegarra, , 2014(Zegarra, , 2018. During the two decades following independence in 1821, the few export products (tobacco, gold, brazilwood) were nanced with traditional sources of commercial credit (Molina, 1987;.…”

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confidence: 99%

Banco Herediano 1879-1884: Operational history of the first provincial bank in Costa Rica

Montero

León-Sáenz

2023

Am. Lat. Hist. Econ

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El artículo analiza la corta vida operativa del Banco Herediano durante el último cuarto del siglo XIX; describe la forma en la que el primer banco provincial de Costa Rica aprovechó la coyuntura favorable de los precios del café para desarrollar la actividad crediticia; también, presenta una breve descripción del contexto económico y bancario del momento, y muestra los cambios que promovieron las condiciones favorables para el establecimiento del banco. El artículo también analiza los cambios en el mercado mundial del café que provocaron la caída en el precio del grano en los mercados y, en consecuencia, el fin del negocio. Con base en documentos del propio banco y fuentes de los archivos nacionales, reconstruimos la estructura y las operaciones del Banco Herediano entre 1879 y 1884. Los resultados arrojan información sobre el financiamiento del banco, los cambios ocurridos en la composición del directorio, un análisis de los 2 600 préstamos individuales y 760 deudores, el tipo de garantías utilizadas, y una breve comparación con otros bancos de la época.

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Free banking and bank entry in Latin America

Cited by 3 publications

References 9 publications

Cross-border branching in the Latin American banking sector

Cross-border branching in the Latin American banking sector

Vinculaciones Políticas en Un Régimen De Banca Libre: El Caso De La Crisis Bancaria De 1878 en Chile

Banco Herediano 1879-1884: Operational history of the first provincial bank in Costa Rica

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