Olena Havrylchyk's Books

Foreign Bank Entry and Credit Allocation in Emerging Markets

By: Ms.Emilia Magdalena Jurzyk,Hans Degryse,Olena Havrylchyk,Sylwester Kozak

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Foreign Bank Entry and Credit Allocation in Emerging Markets

By: Ms.Emilia Magdalena Jurzyk,Hans Degryse,Olena Havrylchyk,Sylwester Kozak

We employ a unique data set containing bank-specific information to explore how foreign bank entry determines credit allocation in emerging markets. We investigate the impact of the mode of foreign entry (greenfield or takeover) on banks' portfolio allocation to borrowers with different degrees of informational transparency, as well as by maturities and currencies. The impact of foreign entry on credit allocation may stem from the superior performance of foreign entrants ("performance hypothesis"), or reflect borrower informational capture ("portfolio composition hypothesis"). Our results are broadly in line with the portfolio composition hypothesis, showing that borrower informational capture determines bank credit allocation.m

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International Monetary Fund

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ISBN 10

1451874154

ISBN 13

9781451874150

Inherited or Earned? Performance of Foreign Banks in Central and Eastern Europe

By: Ms.Emilia Magdalena Jurzyk,Olena Havrylchyk

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Inherited or Earned? Performance of Foreign Banks in Central and Eastern Europe

By: Ms.Emilia Magdalena Jurzyk,Olena Havrylchyk

Using a combination of propensity score matching and difference-in-difference techniques we investigate the impact of foreign bank ownership on the performance and market power of acquired banks operating in Central and Eastern Europe. This approach allows us to control for selection bias as larger but less profitable banks were more likely to be acquired by foreign investors. We show that during three years after the takeover, banks have become more profitable due to cost minimization and better risk management. They have additionally gained market share, because they passed their lower cost of funds to borrowers in terms of lower lending rates. Previous studies failed to pick up the improvements in performance of takeover banks, because they did not account for the performance of financial institutions before acquisitions.

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