Development of Banking Activities in Emerging Market Countries
https://doi.org/10.26794/2308-944X-2019-7-1-26-43
Abstract
The global financial crisis of 2008 has shown the importance of a sound and profitable banking industry in developed, developing and emerging countries as well. Therefore, it is highly valuable to understand the development of banking activities in emerging market economies not only for evaluating the impact of them for encouraging emerging economies’ growth, but also establish the overall effect of these processes to global financial market. Moreover, during the last few years, the role of the emerging economy in the world economy is increasing substantially due to its economic growth, industrial potentials and a massive supply of resources and labour to the advanced economy countries. The number of researches conducted on the problem concentrated on two opposing opinions stating the foreign banks either encourage overall efficiency or cause financial instability. Despite a huge literature on this topic, the risk foreign banks impose on emerging market countries’ domestic banks should be evaluated in advance. The primary goal of this research work is to evaluate the extent of development of banking activities in emerging market countries and provide an analysis of the performance of emerging market banks. In article the author described the process of development of banking activities in emerging market economy countries.
About the Author
O. Narangua
Financial University
Russian Federation
Russian Federation
Otgontugs Narangua (Mongolian People’s Republic, Ulaanbaatar (Ulan Bator), 4th-year undergraduate student, International Finance Faculty, Department of the World Economy and International Finance
Moscow
References
1. Ahmed Abdullahi D. (2013). Effects of financial liberalization on financial market development and economic performance: empirical assessment on emerging countries. Economic Modelling, 30. http://isiarticles.com/bundles/Article/pre/pdf/14236.pdf.
2. Ahamed M. (2016). Bank profitability, stability and efficiency. School of business and management.
3. Allen F., Carletti E., Cull R., Jun ‘QJ’ Qian, Senbet L., Valenzuela P. (2014). The African financial development and financial inclusion gaps. Journal of African Economies. 23(1).
4. Asiama J., & Mobolaji H. (2015). Institutional quality and financial development. ICITI.
5. Atiq Z., & Haque M. (2014). Financial development and economic growth: the role of financial liberalization. SSRN Electronic Journal. DOI: 10.2139/ssrn.2407358. Available at: http://hummedia.manchester.ac.uk/schools/soss/cgbcr/discussionpapers/dpcgbcr201.pdf.
6. Ayadi, R., Naceur, S. (2015). Determinants of financial development across countries.
7. Banks around the World. https://www.relbanks.com/best-banks. Accessed 26/02/2019.
8. Baum Ch., Pundit M., & Ramayandi A. (2017). Capital flows and financial stability in emerging economies. Asian Development Bank. Retrieved from https://www.adb.org/sites/default/files/publication/372256/ewp-522.pdf. Accessed 26/02/2019.
9. Cihak M., Demirguc-Kunt A., Feyen E., Levine R. (2013). Financial Development in 205 Economies, 1960 to 2010. Journal of Financial Perspectives, 1(2).
10. Coyle C., & Turner J. (2013). Law, Politics, and Financial Development: The Great Reversal of the U. K. Corporate Debt Market. The Journal of Economic History, 73(3). https://doi.org/10.1017/S0022050713000624.
11. Eswar S Prasad. (2017). Financial regulation and reforms in emerging markets. NBER Working Papers No. 16428, National Bureau of Economic Research, Inc.
12. Filippidis I., & Katrakilidis C. (2014). Institutions, Policy and Banking Sector Development: A Reassessment. Finance a úvěr-Czech Journal of Economics and Finance, 64(6):501–521. http://journal.fsv.cuni.cz/storage/1313_501–521—-filippidis.pdf.
13. Ghosh A. (2017). How does banking sector globalization affect economic growth? International Review of Economics & Finance, 48(C). https://doi.org/10.1016/j.iref.2016.11.011. https://www.sciencedirect.com/science/article/pii/S1059056016302969
14. Goel S., & Sharma R. (2017). Developing a financial inclusion index for India. Procedia Computer Science, 122:949–956. https://www.sciencedirect.com/science/article/pii/S1877050917327102.
15. Jiang C., Yao S., Feng G. (2013). Bank ownership, privatization, and performance: Evidence from transition country. Journal of banking and finance, 37(9):3365–3367. https://ac.els-cdn.com/S0378426613002276/1-s2.0-S0378426613002276-main.pdf?_tid=11484044-b8b2–4aee-b21a-4fe41836777d&acdnat=1551268584_6d806a2808e0b079e4660d6ea8d2caab
16. Kim D., & Lin S. (2010). Dynamic relationship between inflation and financial development. Macroeconomic Dynamics, 14(03):343–364
17. Kohlscheen E., & Murcia A. (2018). Determinants of bank profitability in emerging markets. BIS Working Papers No. 686. Retrieved from https://www.bis.org/publ/work686.pdf. Accessed 26/02/2019.
18. Law S. H., & Azman-Saini W. N. W. (2012). Institutional quality, governance, and financial development. Economics of Governance, 13(3):217–236. https://link.springer.com/content/pdf/10.1007%2Fs10101-012-0112-z.pdf.
19. Lukosiunas Remi. (November 14, 2017). ROA, ROE, and What These Key Measures Mean for YOUR Bank. Weiss Rating. https://greyhouse.weissratings.com/ROA-ROE-and-What-These-Key-Measures-Mean-for-YOUR-Bank. Accessed: 26/02/2019.
20. Marques J., & Schneider S. (2017). Internationalization strategies of emerging market banks. Business Horizons, 60(5):715–723. https://reader.elsevier.com/reader/sd/pii/S0007681317300939?token=858CB04DEF9B183627DAED9558EBE577C165E5AEE68649B0F5C89AF044D689555F1F1DC2605A026BF265246617DC72A5
21. Sanders D. Biggest Banks in the World 2018. (November 01, 2018). Global Finance Magazine. Available at: https://www.gfmag.com/magazine/november-2018/biggest-banks-world-2018. Accessed 26/02/2019.
22. Top 100 banks in the world. Bank around the world. Available at: https://www.relbanks.com/worlds-top-banks/assets. Accessed 26/02/2019.
Review
For citations:
Narangua O. Development of Banking Activities in Emerging Market Countries. Review of Business and Economics Studies. 2019;7(1):26-43. https://doi.org/10.26794/2308-944X-2019-7-1-26-43
Email this article 