UMA AVALIAÇÃO DOS EFEITOS DA ENTRADA DE BANCOS ESTRANGEIROS NO SETOR BANCÁRIO BRASILEIRO

Abstract

Since mid-1990s, a process of consolidation and internationalization is under way in the Brazilian banking sector. Selected from several features of that process, two effects are approached here: (i) banking credit supply and (ii) operating and efficiency ratios for nineteen top bank groups - state-owned, private or foreign-owned firms. The purpose of this article is to verify two claimed hypotheses related to the academic debate on banking industry in developing countries: (i) the entry of foreign banks in these countries would promote an increase of global banking credit; and (ii) foreign banks are more efficient than domestic banks. This paper shows evidence that such hypotheses are not supported by the Brazilian experience over the last seven years.