Emerging Banking Systems

  • P. Bongini
  • S. Chiarlone
  • G. Ferri
Part of the Palgrave Macmillan Studies in Banking and Financial Institutions book series (SBFI)


As the process of global economic integration moves irreversibly ahead, the increasing role of emerging countries is often undervalued and/or put at risk by the weakness of their banking systems. In parallel to inefficiencies arising from the misallocation of resources, the weaknesses in the national banking systems of emerging countries have contributed to the increasingly frequent systemic crises that occurred from the mid 1990s until only a few years ago.1


Banking System Foreign Bank NBER Working Paper Currency Reserve Local Bank 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.


Unable to display preview. Download preview PDF.

Unable to display preview. Download preview PDF.


  1. Baliño, T. (1991), ‘The Argentine Banking Crisis of 1980’, in Banking Crises: Cases and Issues, ed. by V. Sundararajan and T. Baliño (Washington: International Monetary Fund), pp. 58–112.Google Scholar
  2. Barajas, A., R. Steiner and N. Salazar (1999), ‘Foreign Investment in Colombia’s Financial Sector’, IMF Working Paper 99/150 (Washington: International Monetary Fund, November).Google Scholar
  3. Barth, J., G. Caprio and R. Levine (2001), ‘Bank regulation and supervision: what works best?’, World Bank Policy Research Working Paper No. 2775, August.Google Scholar
  4. Berger, A. N., L. F. Klapper and G. F. Udell (2001), ‘The Ability of Banks To Lend to Informationally Opaque Small Businesses’, Journal of Banking and Finance, Vol. 25, 2001.CrossRefGoogle Scholar
  5. Boehmer, E., R.C. Nash and J.M. Netter (2005), ‘Bank Privatization in Developing and Developed Countries: Cross-sectional Evidence on the Impact of Economic and Political Factors’, Journal of Banking and Finance, vol. 29, issues 8–9, 1981–2013.CrossRefGoogle Scholar
  6. Bongini, P., G. Ferri and H. Hahm (2000), ‘Corporate Bankruptcy in Korea: Only the Strong Survive?’, The Financial Review.Google Scholar
  7. Bongini, P., S. Claessens and G. Ferri (2001), ‘The Political Economy of Distress in East Asian Financial Institutions’, Journal of Financial Services Research 19(1): 5–25.CrossRefGoogle Scholar
  8. Brandt, L. and H. Li (2003), ‘Bank Discrimination in Transition Economies: Ideology, Information, or Incentives?’, Journal of Comparative Economics 31: 387–413.CrossRefGoogle Scholar
  9. Caballero, R. J. (2006), ‘On the Macroeconomics of Asset Shortages’, NBER Working Paper 12753, December 2006.Google Scholar
  10. Caballero, R. J. and A. Krishnamurthy (2003), ‘Excessive Dollar Debt: Financial Development and Underinsurance’, Journal of Finance, Vol. 58, pp. 867–94.CrossRefGoogle Scholar
  11. Canals, Jordi (1997), Universal Banking: International Comparisons and Theoretical Perspectives (Oxford: Oxford University Press).CrossRefGoogle Scholar
  12. Chang, C. (2003), ‘Progress and Peril in China’s Modern Economy’, Federal Reserve Bank of Minneapolis: The Region. 17(4): 26–30, Dec.Google Scholar
  13. Chan-Lau, J. A. (2004), ‘Reserve Holdings and Sovereign Default Risk,’ unpublished; (Washington: IMF).Google Scholar
  14. Chiuri, M.C., G. Ferri and G. Majnoni (2002), ‘The Macroeconomic Impact of Bank Capital Requirements in Emerging Economies: Past Evidence to Assess the Future’, Journal of Banking and Finance 26(5): 881–904.CrossRefGoogle Scholar
  15. Claessens, S. and T. Glaessner (1999), ‘Internationalization of Financial Services in Asia’, Policy Research Working Paper Series 1911, The World Bank, Washington.Google Scholar
  16. Claessens, S and L. Laeven (2003), ‘What Drives Bank Competition: Some International Evidence’, mimeo, World Bank, February.CrossRefGoogle Scholar
  17. Claessens, S., A. Demirgüç-Kunt and H. Huizinga (2001), ‘How Does Foreign Entry Affect Domestic Banking Markets?’, Journal of Banking and Finance 25(5): 891–911.CrossRefGoogle Scholar
  18. Clarke, G., R. Cull and M. Shirley (2005), ‘Bank Privatization in Developing Countries: A synthesis of Lessons and Findings’, Journal of Banking and Finance, 2005, vol. 29, issues 8–9, pages 1905–30.CrossRefGoogle Scholar
  19. Clarke, G., R. Cull, L. D’Amato and A. Molinari (1999), ‘The Effect of Foreign Entry on Argentina’s Domestic Banking Sector’, Policy Research Working Paper Series 2158, The World Bank, Washington.Google Scholar
  20. Clarke, G., R. Cull, M.S. Martinez Peria and S.M. Sánchez (2005), ‘Bank Lending to Small Businesses in Latin America: Does Bank Origin Matter?’, Journal of Money, Credit, and Banking, Vol. 37/1: 83–118.CrossRefGoogle Scholar
  21. Corsetti, G., P. Pesenti and N. Roubini (1999), ‘What Caused the Asian Currency and Financial Crises?’, Japan and the World Economy, Vol. 11, No. 3: 305–13.CrossRefGoogle Scholar
  22. Council of Economic Advisors (1991), ‘Economic Report of the President’, Washington, DC.Google Scholar
  23. Dages, B.G., L. Goldberg and D. Kinney (2000), ‘Foreign and Domestic Bank Participation in Emerging Markets: Lessons from Mexico and Argentina’, NBER Working Paper No. 7714.Google Scholar
  24. Davis, E. P. and Mark R. Stone, (2004), ‘Corporate Financial Structure and Financial Stability’, Journal of Financial Stability, Vol. 1, No. 1: 65–91.CrossRefGoogle Scholar
  25. de Haas, R.T.A. and I. Naaborg (2005), ‘Foreign Banks in Transition Economies: Small Business Lending and Internal Capital Markets’, De Nederlandsche Bank, April.Google Scholar
  26. Demirgüc-Kunt, A, L Laeven and R Levine (2003), ‘Regulations, Market Structure, Institutions, and the Cost of Financial Intermediation’, World Bank, mimeo, 22 July.CrossRefGoogle Scholar
  27. Denizer, C, 1999, ‘Foreign Entry in Turkey’s Banking System, 1980–1997’, in Claessens, S. and M. Jansen (eds), The Internationalization of Financial Services: Issues and Lesson for Developing Countries (Boston: Kluwer Academic).Google Scholar
  28. Detragiache, E. and P. Gupta (2004), ‘Foreign Banks in Emerging Market Crises: Evidence from Malaysia’, IMF Working Paper.Google Scholar
  29. Domaç, I. and G. Ferri (1999), ‘Did Financial Shocks Disproportionately Hit Small Businesses in Korea?’, Economic Notes, No. 3: 403–29.Google Scholar
  30. Domaç, I., G. Ferri and T.S. Kang (1999), ‘The Credit Crunch in East Asia: Evidence from Field Findings on Bank Behavior and Policy Issues’, World Bank.Google Scholar
  31. Edison, H. 2003, ‘Are Foreign Exchange Reserves in Asia Too High’ World Economic Outlook (Washington: International Monetary Fund, September)Google Scholar
  32. Eichengreen, B. (2001), ‘Crisis Prevention and Management: Any New Lessons from Argentina and Turkey?’, background paper for the World Bank’s Global Development Finance 2002, October.Google Scholar
  33. Eichengreen, B. and A. Mody (1998a), ‘What Explains Changing Spreads on Emerging Market Debt?’, NBER Working Paper No. 6408 (Cambridge, Mass.: National Bureau of Economic Research).CrossRefGoogle Scholar
  34. Eichengreen, B. and M. Mussa (1998b), ‘Capital Account Liberalization-Theoretical and Practical Aspects’, IMF Occasional Paper No. 172 (Washington: International Monetary Fund).Google Scholar
  35. Ferri, G. (2002), ‘Quali lezioni per il futuro dalle crisi argentina e turca?’, Rapporto Monetario CER, Roma.Google Scholar
  36. Ferrucci, G., 2003, ‘Empirical Determinants of Emerging Market Economies’ Sovereign Bond Spreads’, Working Paper No. 205 (London: Bank of England).Google Scholar
  37. Focarelli, D. and A.F. Pozzolo (2001), ‘The Patterns of Cross-Border Bank Mergers and Shareholdings in OECD Countries’, Journal of Banking and Finance 25(12): 2305–37.CrossRefGoogle Scholar
  38. Folkerts-Landau, D. and B. Chadha, 1999, ‘The Evolving Role of Banks in International Capital Flows’, in International Capital Flows, ed. By Martin Feldstein (Chicago; London: University of Chicago Press), pp. 191–234.Google Scholar
  39. Furman, J. and J.E. Stiglitz (1998), ‘Economic Crisis: Evidence and Insights from East Asia’, Brookings Papers on Economic Activity.Google Scholar
  40. Giannetti, M. and S. Ongena (2005), ‘Financial Integration and Entrepreneurial Activity: Evidence From Foreign Bank Entry in Emerging Markets’, ECB Working Paper no. 498.Google Scholar
  41. Goeltom, M. (2006), ‘Indonesia’s Banking Industry: Progress To Date’, in BIS Papers 28, ‘The Banking System in Emerging Economies: How Much Progress Has Been Made?’, August, 2006 (Basel: Bank of International Settlements).Google Scholar
  42. Goldberg, L., G. Dages and D. Kinney (2000), ‘Foreign and Domestic Bank Participation in Emerging Markets: Lessons from Mexico and Argentina’, Economic Policy Review, 6(3), Federal Reserve Bank of New York.Google Scholar
  43. Goldstein, M. (1998), ‘The Asian Financial Crisis: Causes, Cures, and Systemic Implications’, Policy Analysis in International Economics Institute for International Economics.Google Scholar
  44. Hawkins, J., (2002), ‘Bond Markets and Banks in Emerging Economies’, in The Development of Bond Markets in Emerging Economies, BIS Papers No. 11 (Basel, Switzerland: Bank for International Settlements, June).Google Scholar
  45. IMF (1995), ‘International Capital Markets: Developments, Prospects, and Key Policy Issues’, Washington, DC: World Economic and Financial Surveys.Google Scholar
  46. IMF (2001), IMF Survey, Vol. 30, No. 23, 10 December.Google Scholar
  47. IMF (2003a), ‘Global Financial Stability’, Report, September 2003 (Washington, DC: IMF, 2003a).Google Scholar
  48. IMF (2003b), ‘World Economic Outlook’, September 2003 (Washington, DC: IMF, 2003b).Google Scholar
  49. IMF (2004), ‘Emerging Markets as Net Capital Exporters’, in IMF, Global Financial Stability Report September 2004 (Washington, DC: IMF, 2004).Google Scholar
  50. IMF (2005a), ‘Corporate Finance in Emerging Markets’, in IMF, Global Financial Stability Report April 2005, IMF, Washington DC.Google Scholar
  51. IMF (2005b), ‘Development of Corporate Bonds Markets in Emerging Markets Countries’, in IMF, Global Financial Stability Report (Washington, DC: IMF, 2005b).Google Scholar
  52. IMF (2006), ‘Global Financial Stability Report’, September 2006, (Washington, DC: IMF, 2006).Google Scholar
  53. IMF (2008), ‘Global Financial Stability Report’, April 2008, (Washington, DC: IMF, 2008).Google Scholar
  54. Kamin, S. and K. von Kleist (1999), ‘The Evolution and Determinants of Emerging Market Credit Spreads in the 1990s’, BIS Working Paper No. 68 (Basel: Bank for International Settlements).Google Scholar
  55. Kaminsky, G. L. and C. M. Reinhart (1999), ‘The Twin crises: the Causes of Banking and Balance-of-Payments Problems’, American Economic Review: 473–500.Google Scholar
  56. Kim, H. E. and B. Y. Lee (2003), ‘The Effects of Foreign Bank Entry on the Performance of Private Domestic Banks in Korea’, Central Bank papers submitted by Working Group members, 2003.Google Scholar
  57. Krugman, P. (1979), ‘A Model of Balance-of-Payments Crises’, Journal of Money, Credit and Banking, Vol. 11, No. 3: 311–25CrossRefGoogle Scholar
  58. Krugman, P. (1998), ‘What Happened to Asia’, mimeo, MIT, 1998.Google Scholar
  59. La Porta, R., F. López-de-Silanes and A. Shleifer (2002), ‘Government Ownership of Banks’, Journal of Finance, 57: 265–301.CrossRefGoogle Scholar
  60. Laeven, Luc (1999), ‘Impact of Ownership Structure on Bank Performance in East Asia’ (Washington: World Bank, September).Google Scholar
  61. Levine, Ross, (1999), ‘Foreign Bank Entry and Capital Control Liberalization: Effects on Growth and Stability’, unpublished (Minneapolis, Minnesota: University of Minnesota, October).CrossRefGoogle Scholar
  62. Levy Yeyati, E. and A. Micco (2003), ‘Concentration and Foreign Participation in Latin American Banking Sectors: Impact on Competition and Risk’, Working Paper No 499, Inter-American Development Bank.Google Scholar
  63. Lowenstien, R. (2001), When Genius Failed: The Rise and Fall of Long-Term Capital Management, (London: Fourth Estate).Google Scholar
  64. Martinez Peria, M. S., A. Powell, and I. V. Hollar (2002), ‘Banking on Foreigners: The Behavior of International Bank Lending to Latin America, 1985–2000’.Google Scholar
  65. Masson, P. (1999), ‘Contagion: Macroeconomic Models with Multiple Equilibria’, Journal of International Money and Finance, Vol. 18, Issue 4: 587–602.CrossRefGoogle Scholar
  66. Mathieson, D. J., J. E. Roldos, R. Ramaswamy and A. Ilyina (2004), ‘Emerging Local Securities and Derivatives Markets’, World Economic and Financial Surveys, (Washington, DC: IMF, 2004).Google Scholar
  67. Megginson, W. L. (2005), ‘The Economics of Bank Privatization’, Journal of Banking and Finance, vol. 29, issues 8–9: 1931–80.CrossRefGoogle Scholar
  68. Mihaljek, D. (2006), Privatisation, Consolidation and the Increased Role of Foreign Banks, in BIS Papers 28, ‘The Banking System in Emerging Economies: How Much Progress Has Been Made?’ (Basel: Bank of International Settlements, 2006).Google Scholar
  69. Miller, M. H. and J. E. Stiglitz (1999), ‘Bankruptcy Protection Against Macroeconomic Shocks: The Case for a Super-Chapter 11’, presented at conference, Capital Flows, Financial Crisis and Policies’, World Bank, Washington, DC, 15–16 April.Google Scholar
  70. Mohanty, M. S., G. Schnabel and P. Garcia-Luna D., (2006), Banks and Aggregate Credit: What is New?, in BIS Papers 28, ‘The Banking System in Emerging Economies: How Much Progress Has Been Made?’ (Basel: Bank of International Settlements, 2006).Google Scholar
  71. Moreno, R. (2002), ‘Reforming China’s Banking System’, FRBSF Economic Letter No. 2002–17, 31 May.Google Scholar
  72. Moreno, R. and A. Villar (2005), ‘The Increased Role of Foreign Bank Entry in Emerging Markets?’, BIS Papers 23 (Basel: Bank of International Settlements).Google Scholar
  73. Obstfeld M. (1996), ‘Models of Currency Crises with Self-Fulfilling Features’, European Economic Review 40: 1037–47.CrossRefGoogle Scholar
  74. Palmer, D. E. (2000), ‘U.S. Bank Exposure to Emerging-Market Countries During Recent Financial Crises’, Federal Reserve Bulletin, US Board of Governors of the Federal Reserve Board (February).Google Scholar
  75. Park, A. and K. Sehrt (2001), ‘Tests of Financial Intermediation and Banking Reform in China’, Journal of Comparative Economics 29: 608–44.CrossRefGoogle Scholar
  76. Radelet, S. and J. Sachs (1998), ‘The Onset of the East Asian Financial Crisis’, NBER, Working Paper No. 6680.CrossRefGoogle Scholar
  77. Rajan, R. (2006), ‘Investment Restraint, The Liquidity Glut, and Global Imbalances’, remarks at the Conference on Global Imbalances organized by the Bank of Indonesia in Bali, 16 November.Google Scholar
  78. Rajan, R. G., and L. Zingales, (2003a), ‘Banks and Markets: The Changing Character of European Finance’, NBER Working Paper No. 9595 (Cambridge, Mass.: National Bureau of Economic Research).Google Scholar
  79. Rajan, R.G. and L. Zingales (2003b), Saving Capitalism from the Capitalists. ‘Unleashing the Power of Financial Markets To Create Wealth and Spread Opportunity (New York: Random House; Crown Business — trad, it, 2003b).Google Scholar
  80. Rodrik, D. (2006), ‘The Social Cost of Foreign Exchange Reserves’, NBER Working Paper No. 11952 (Cambridge, Mass.: National Bureau of Economic Research, 2006).CrossRefGoogle Scholar
  81. Schinasi, G. and T. Smith, (1998), ‘Fixed-Income Markets in the United States, Europe, and Japan: Some Lessons for Emerging Markets’, IMF Working Paper No. 98/173 (Washington, DC: IMF, 1998).Google Scholar
  82. Shleifer, A. and R. W. Vishny (1994), ‘Politicians and Firms’, The Quarterly Journal of Economics, Vol. 109, No. 4 (November), pp. 995–1025.CrossRefGoogle Scholar
  83. Stiglitz, J.E. (1999), ‘Introduction’, Conference on ‘The East Asian Crisis: Lessons for Today and for tomorrow’, Economic Notes, No. 3: 249–54.Google Scholar
  84. UNCTAD (2003), Handbook of Statistics (New York and Geneva: United Nations).Google Scholar
  85. Vansetti, M. C, P. Guarco and G. W. Bauer (2000), ‘The “Fall” of Bancomer and the Future of Indigenous Mega-Banks in Latin America’, Moody’s Investor Service, Global Credit Research (April).Google Scholar
  86. Wei, S.J. and T. Wang (1997), ‘The Siamese Twins: Do State-Owned Banks Favor State-Owned Enterprises in China?’, China Economic Review 8(1): 19–29.CrossRefGoogle Scholar
  87. World Bank (1996), The East Asian Miracle, (Washington, DC: The World Bank, 1996).Google Scholar
  88. Zhou, X. (2004), ‘Some Issues Concerning the Reform of the State-owned Commercial Banks’, Speech by the Governor of the People’s Bank of China, at the IIF Spring Membership Conference, Shanghai, 16 April.Google Scholar

Copyright information

© P. Bongini, S. Chiarlone and G. Ferri 2009

Authors and Affiliations

  • P. Bongini
  • S. Chiarlone
  • G. Ferri

There are no affiliations available

Personalised recommendations