Free banking and bank entry in Latin America

Authors

  • Luis Felipe Zegarra

DOI:

https://doi.org/10.1016/j.ihe.2013.06.013

Keywords:

Latin America, Banking sector, Bank laws, Bank entry, O54, N26, N20, G21

Abstract

This article analyzes the impact of free-banking on the banking sector in Latin America in the 19th and early 20th centuries. I use data for seven countries to compare the entry of banks and the growth of bank output prior and after the enactment of free-banking laws to determine whether free-banking (by establishing general requirements for granting note-issuance rights) lowered barriers to entry. The results show that in most Latin American countries the adoption of free-banking laws did not cause in the short run an increase in bank entry and in bank output growth.

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How to Cite

Zegarra, L. F. (2019). Free banking and bank entry in Latin America. Investigaciones De Historia Económica, 9(3), 131–142. https://doi.org/10.1016/j.ihe.2013.06.013

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Section

ARTICLES