Do foreign-owned banks affect banking system liquidity risk?

Dinger, Valeriya

doi:10.1016/j.jce.2009.04.003

Cited by 82 publications

(80 citation statements)

References 14 publications

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“…Capital may also reduce liquidity creation because it crowds out deposits. This negative relationship between bank liquidity and capital adequacy has been reported by Berger and Bouwman (2009), Diamond and Rajan (2001), Dinger (2009), Distinguin et al (2013), Gorton and Winton (2000), Lei and Song (2013), Munteanu (2012), and Vodová (2013 and. An alternative view -the risk absorption hypothesis -is related to banks' role as risk transformers and emphasizes that higher capital improves banks' ability to absorb risk and hence their ability to create liquidity.…”

Section: XXsupporting

confidence: 66%

Factors affecting sensitivity of commercial banks to bank run in the Visegrad Countries

Vodová¹,

Stavárek²

2017

E+M

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Section: XXsupporting

confidence: 66%

Factors affecting sensitivity of commercial banks to bank run in the Visegrad Countries

Vodová¹,

Stavárek²

2017

E+M

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“…In the case of larger domestic banks, increased exposure to liquidity risk is compensated for by their financial strength, broad diversification of loans and improved access to external nondeposit funding sources. Large domestic banks are mostly owned by foreign entities which enables them to gain inexpensive cross-border credit lines, and efficient application of purchased liquidity management (Dinger, 2009 Source: Author's calculations (the starred coefficient estimates are significant at the 1% (*), 5% (**) or 10% (***) level. Studies show that liquidity has, for the most part, a negative association with the business cycle.…”

Section: Analysis Of the Influence Of Statistically Significant Determentioning

confidence: 99%

A Comparative Analysis of the Determinants of Liquidity Risk Exposure in the Banking Sector of the Republic of Serbia and Banking Sectors of Former Socialist Countries

Stanić¹

2016

Proceedings of the International Scientific Conference - Sinteza 2016

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Abstract:The purpose of this paper is to point out statistically significant empirical determinants of exposure to liquidity risk for banks operating in the Republic of Serbia, and to perform a comparative analysis of the impact of these determinants on Serbian banks and banks from countries that have gone through a transitional period from being socialist countries to becoming EU members. The results indicate that increased exposure to liquidity risk in the local banking sector is associated with the following factors: high financial leverage, GDP growth, decline in the unemployment rate, decline in the deficit of balance of payments and an appreciation of local currency. The general impression is that the local banking sector is faced with an excessively high level of liquidity. Based on the comparative analysis carried out, and assuming that the Republic of Serbia undergoes the transition process that follows a model similar to that of the analysed EU members, several conclusions can be drawn regarding the nature of the effect of determinants of exposure to liquidity risk on banks during the transition period. It is to be expected that larger banks will keep their liquidity at relatively lower levels, that the development of financial markets will lead to a change in liquidity management strategy and reorientation of local banks to purchased liquidity management, and that the levels of capital adequacy will converge to that prescribed by the Basel regulatory framework.

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“…Then foreign investment may be beneficial for the banking system in transition (La porta et al, 1999). Indeed, Dinger (2009) showed that public private banks as a multinational firm act as a stabilizer of the banking system of these countries. This role could be promoted through access to diversified sources of international liquidity.…”

Section: The Benefits Of Foreign Investmentmentioning

confidence: 99%

Does Foreign Ownership Influence Firm Profitability? Evidence from the Tunisian Context

Moez¹,

Marouan²,

Tahar³

2015

IJEF

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The aim of this paper is to examine the impact of foreign ownership on the profitability of Tunisian financial institutions. Empirical evidence shows (i) that the foreign ownership has a positive and significant effect on firm profitability as measured by return on assets and return on equity.(ii) The presence of foreign directors in the board causes also an increase in return on assets. (iii) However, contrary to previous studies, state-owned firms seem to perform better than fully privatized companies.

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Do foreign-owned banks affect banking system liquidity risk?

Cited by 82 publications

References 14 publications

Factors affecting sensitivity of commercial banks to bank run in the Visegrad Countries

Factors affecting sensitivity of commercial banks to bank run in the Visegrad Countries

A Comparative Analysis of the Determinants of Liquidity Risk Exposure in the Banking Sector of the Republic of Serbia and Banking Sectors of Former Socialist Countries

Does Foreign Ownership Influence Firm Profitability? Evidence from the Tunisian Context

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