Search Results
Journal Article
Banking on it: Increased foreign bank entry into Brazil
Journal Article
Implications of the globalization of the banking sector: the Latin American experience
Foreign entry into domestic banking markets remains a contentious issue. Whether privatizing a state bank in Brazil or selling a failed bank in Japan, the proposed sale of a large domestic financial institution, possibly to a foreign acquirer, frequently results in a major controversy. Many Asian countries have yet to experience major foreign penetration of domestic banking markets, while Latin American countries have privatized many of their banks and have encouraged foreign banks to enter their domestic markets. ; Because many Latin American countries opened their markets during the 1990s, ...
Journal Article
Brazil: shifting from vast bureaucracy to managerial state
Working Paper
Politics, economics and investment: explaining plant and equipment spending by U.S. direct investors in Argentina, Brazil, and Mexico
Few economists or laymen would deny that political events can have an important, sometimes even overwhelming, impact on economic decisions in general, and investment decisions in particular. The first goal of this paper was to integrate a number of political and non-traditional economic variables into the standard theory of investment based on the maximization of the expected value of the firm. The second goal was to test this generalized investment theory on a particularly fertile field for gauging the interaction of political and economic factors: the plant and equipment spending of foreign ...
Journal Article
The impact of the Brazilian crisis in the Tenth District
The recent economic turmoil in Brazil, triggered by the devaluation in January of the "real" (Brazil's currency), has understandably created concern about how the United States will be affected. This article looks at the possible impacts in the Tenth District and finds that, at least for now, there is little need for concern. The article is divided into three sections: an explanation of the crisis and its overall potential for harm, a brief discussion of the direct impact on district producers, and a more thorough analysis of the indirect ways a spread of the crisis could affect ...
Journal Article
Beyond the border: the politics of Brazil's financial troubles
Working Paper
Internal Liquidity Management and Local Credit Provision
This paper studies the patterns of internal liquidity management and their effect on bank lending, using a novel branch-level dataset of Brazilian banks. Our results suggest that internal liquidity management increases during times of financial stress. Privately owned banks are most affected by a liquidity shock, and increase the level of internal funding to maintain their branch lending, while their government-owned competitors react strategically. Private and government banks increase the funding of branches in concentrated and riskier areas. This funding translates into more lending, as ...