Foreign banks among total banks (%)

This indicator measures the proportion of banks within an economy that are predominantly owned by foreign entities, specifically those in which 50% or more of their shares are held by non-residents. A high percentage of foreign-owned banks can signal increased international investment and greater competition in the financial sector, potentially leading to enhanced efficiency and innovation in banking services. Conversely, it may also indicate vulnerabilities to external economic shifts, as the interests of foreign stakeholders can influence local financial stability. Monitoring this metric provides valuable insights into the globalization of the banking system, the level of confidence in domestic banks, and the potential impact on local lending practices and economic growth. Source: