Financial Liberalisation and Foreign Bank Entry: What Is the Nexus?

Abstract

Over the last two decades, several developing and emerging market economies (EMEs) have embraced domestic as well as international financial liberalisation. While there is considerable heterogeneity in the details of the policy mixtures adopted by individual countries, the broad contours have remained constant across the board, with most countries opening up their economies to cross-border flows of private capital and their financial systems to both domestic and foreign entrants.