Are Foreign Banks More Profitable than Domestic Banks? Home- and Host-Country Effects of Banking Market Structure, Governance, and Supervision

Are Foreign Banks More Profitable than Domestic Banks? Home- and Host-Country Effects of Banking Market Structure, Governance, and Supervision

Using both bank- and country-level data on banking sectors from 70 countries over the period 1992-2006, this paper empirically investigates the joint home- and host-country effects of banking market structure, macroeconomic condition, governance, and changes in bank supervision on foreign bank margins.

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