Has Foreign Entry Made Domestic Banks More Efficient?

Has foreign entry indeed made domestic banks more efficient? Unite's and Sullivan's study, based on a sample of 16 expanded commercial banks (ECBs) and general macroeconomic data for the Philippines for the period 1990-1998, on the whole, supports the view of a general weakening of relationship-style banking brought about by the liberalization of foreign presence in the Philippine banking sector. This has consequences, of course, to the practices in the domestic banking industry. Read more in this Policy Notes.financial liberalization, foreign bank entry, domestic banks, expanded commercial banks