IMF: Lat Am banks a match for foreign rivals
A paper published by the IMF this month investigates the efficiency of domestic and foreign banks in the Central American region during 2002-07 and finds that foreign banks are not necessarily more efficient than their domestic counterparts.
The author uses two main empirical approaches, data envelopment analysis and stochastic frontier analysis to study the development of bank efficiency in Central America, the Dominican Republic and Panama during the recent phase of foreign bank entry.
Results
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