TY - JOUR
T1 - The operation of the Mexican banking system under foreign multinational corporations’ control
T2 - new activities and traditional income
AU - Levy-Orlik, Noemi
AU - Dominguez-Blancas, Christian
N1 - Publisher Copyright:
© 2016 Taylor & Francis.
PY - 2016/7/3
Y1 - 2016/7/3
N2 - Abstract: This paper discusses the operation of banks in developing economies dominated by foreign multinational corporations (FMCs), and argues that banks have acquired new activities without drastically modifying the composition of their income. This discussion takes place in the light of the profound changes in financial systems that have modified the linkages between banks, capital markets, businesses and households, during the period of globalization and financialization. The main argument of this paper is that although foreign multinational corporations have become dominant in developing countries, and bank activities have diversified, the multinational corporations of the banking sector still rely on interest margins, particularly from consumer credit. This is explained in terms of specific bank credit activities that operate under oligopolistic structures, a condition that has not being modified by foreign multinational corporations’ dominance in developing banking markets.
AB - Abstract: This paper discusses the operation of banks in developing economies dominated by foreign multinational corporations (FMCs), and argues that banks have acquired new activities without drastically modifying the composition of their income. This discussion takes place in the light of the profound changes in financial systems that have modified the linkages between banks, capital markets, businesses and households, during the period of globalization and financialization. The main argument of this paper is that although foreign multinational corporations have become dominant in developing countries, and bank activities have diversified, the multinational corporations of the banking sector still rely on interest margins, particularly from consumer credit. This is explained in terms of specific bank credit activities that operate under oligopolistic structures, a condition that has not being modified by foreign multinational corporations’ dominance in developing banking markets.
KW - banking profitability
KW - developing countries
KW - multinational banks
UR - http://www.scopus.com/inward/record.url?scp=84960202253&partnerID=8YFLogxK
U2 - 10.1080/02692171.2015.1106444
DO - 10.1080/02692171.2015.1106444
M3 - Artículo de revisión
SN - 0269-2171
VL - 30
SP - 527
EP - 546
JO - International Review of Applied Economics
JF - International Review of Applied Economics
IS - 4
ER -