Hidenobu Okuda

The Effects of Foreign Bank Entry on the Thai Banking Market: Empirical Analysis from 1990 to 2002

This paper investigates the impact of foreign bank entry on Thai domestic banks by using panel data on 17 domestic commercial banks from 1990 to 2002. The study examines different factors affecting bank performance, including changes in the foreign ownership of banks, financial regulations, and market structure. The results show that an increase in the presence of foreign banks has led to a rise in overhead expenses, a decline in profits, and an increase in the interest spreads of domestic banks. In the short run, increased competition from foreign banks seems to have negative effects on domestic banks.

Determinants of Operational Efficiency and Total Factor Productivity Change of Major Cambodian Financial Institutions: A Data Envelopment Analysis During 2006–13

ABSTRACT We examine the determinants of efficiency and the total factor productivity (TFP) change of major financial institutions in Cambodia using data envelopment analysis (DEA). We apply two-stage bootstrapping estimation method to a panel data of twenty-seven financial institutions in the period of 2006–13. The empirical results reveal that the size and ownership structure of financial institutions are significantly correlated with the efficiency and TFP growth of banks. The efficiency of domestic institutions is found to be better than that of their foreign counterpart, and there is no significant difference in TFP growth between domestic and foreign institutions.

Banking and Dollarization: A Comparative Study of Cambodia, Lao PDR, and Vietnam

The activities of financial organizations have received attention in recent years as a determining factor in dollarization. This paper examines primary issues relating to banking operations in the dollarized economy and describes the distinctive characteristics of bank behavior in Cambodia, Lao PDR, and Vietnam. Dollarization of these three countries was not driven by a rapid inflow of overseas dollar funds intermediated through banks, in contrast to that observed in Central and Eastern Europe countries. Rather, the expansion of dollar-denominated loans in these countries was fully financed by bank intermediation of domestic dollar funds. To expand the usage of local-currency-dominated financial services, desirable macroeconomic circumstances should be realized and strict regulatory measures to restrict network externalities of dollar use should be introduced.