Bank Lending to Small Businesses in Latin America: Does Bank Origin Matter?

Topics:
Commercial Lending
Tags:
Bank,
Finance,
Foreign Bank,
Free Trade,
Latin America,
Small Business,
World Bank Group
Source:
World Bank Group

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Overview: In recent years foreign bank participation has increased tremendously in Latin America. This paper argues that foreign bank entry benefits Latin American banking systems by reducing the volatility of loans and deposits and increasing efficiency. Others are concerned that foreign banks might choose to extend credit only to certain customers, leaving some sectors-such as small businesses-unserved.

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Format: PDF | Size: 1,966KB | Date: Jan 2002 | Pages: 42

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