Bank privatization in developing countries: A summary of lessons and findings

Clarke, George R. G.; Cull, Robert; Shirley, Mary M.

doi:10.1016/j.jbankfin.2005.03.006

Cited by 171 publications

(122 citation statements)

References 62 publications

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“…In addition, their research showed that early privatized banks are more efficient than later-privatized banks. Their findings are consistent with the ones of Clarke et al (2005) which reported that although bank privatization usually improves bank efficiency, gains are greater when the government fully relinquishes control, when banks are privatized to strategic investors, when foreign banks are allowed to participate in the privatization process and when the government does not restrict competition.…”

Section: Literature Reviewsupporting

confidence: 88%

“…The present work is motivated by the relative shortage of empirical evidence on the impact of mergers and acquisitions on Romanian banks. The current stream of literature dealing with the effects of M&As on Romanian banks consists of regional analyses (among other Eastern European countries), such as those of Bonin et al, 2003 and2005;Clarke et al, 2005, or cross-border analyses (Correa, 2008;Beccalli and Frantz, 2008). In addition, there is a handful of studies assessing the Romanian banking performance in general, regardless of the M&A operations (Grigorian and Manole, 2002;Asaftei and Kumbhakar, 2007;Gondor and Munteanu, 2010).…”

Section: Introductionmentioning

confidence: 99%

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Post M&A Accounting Performance of Romanian Banks

Huian¹

2012

JEERBE

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The purpose of this paper is to assess the financial performance of Romanian banks involved in M&A activities, as target banks, over a period of 10 years (1998)(1999)(2000)(2001)(2002)(2003)(2004)(2005)(2006)(2007)(2008). Performance is analyzed in terms of profitability by using traditional accounting measures: ROE, ROA and NIM. Post-M&A performance for a 3-year period is compared with the aggregate ratios from all Romanian banks. The findings are mixed. On one hand, bank M&A in Romania does not result in improved ROE or ROA in the post M&A 3-year period under review. On the other hand, merged banks report media NIM above industry.

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Section: Literature Reviewsupporting

confidence: 88%

Section: Introductionmentioning

confidence: 99%

Post M&A Accounting Performance of Romanian Banks

Huian¹

2012

JEERBE

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“…Although the state bank interest expense ratio is comparable to those of domestic and foreign-owned privatesector banks, the interest revenue ratios of state-owned banks are the lowest among all bank categories, rendering the interest margin minimal for the average state-owned bank. Given this finding, one may be tempted to recommend privatization of state-owned banks as Clarke et al (2005) suggest. However, while world financial markets go through hardships that have not been experienced since the Great Depression and while many private enterprises are nationalized throughout the world, privatization of state-owned banks is not something to be recommended at this time.…”

Section: Discussionmentioning

confidence: 99%

Parliamentary election cycles and the Turkish banking sector

Baum

Çağlayan

Talavera

2010

Journal of Banking & Finance

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This paper analyzes the effects of parliamentary election cycles on the Turkish banking system. Using annual bank-level data representing all banks in Turkey during 1963-2007, we present evidence of meaningful differences in the structure of bank assets, liabilities and financial performance across different stages of the parliamentary election cycle. However, we find that government-owned banks' behavior does not meaningfully differ from that of either domestic and foreign-owned private sector banks before, during or after elections. Our estimates also show that government-owned banks underperform both domestic and foreign-owned private sector counterparts.JEL classification: G21, G28

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“…The government must enhance the regulations and strengthen the institutions to promote the private banks because the majority of studies concluded that bank privatization improves the banks' performance when it is adopted correctly (Clarke, Cull, & Shirley, 2005). On the other hand, the public banks can benefit from the foreign banks in term of management styles, new technologies and risk-taking.…”

Section: Ishaq Hacini Khadra Dahoumentioning

confidence: 99%