How do bank competition, regulation, and institutions shape the real effect of banking crises? International evidence

Fernández, Ana Isabel; González, Francisco; Suárez, Nuria

doi:10.1016/j.jimonfin.2012.10.002

Cited by 45 publications

(19 citation statements)

References 42 publications

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“…Economic and Monetary Conditions.- Table 2 reports for the baseline linear probability model the estimated coefficients, in a second column the standard errors that are clustered at the bank-month level, i.e., the level at which the interaction terms-which are the main focus of our analysis-vary (see Moulton 1986 for example), 14 followed in a third column by the corresponding significance levels. We start analyzing the direct effects of monetary and economic conditions on the probability that the LOAN APPLICATION IS GRANTED.…”

Section: Resultsmentioning

confidence: 99%

Credit Supply and Monetary Policy: Identifying the Bank Balance-Sheet Channel with Loan Applications

Jiménez

Ongena

Peydró

et al. 2012

American Economic Review

824

458

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We analyze the impact of monetary policy on the supply of bank credit. Monetary policy affects both loan supply and demand, thus making identification a steep challenge. We therefore analyze a novel, supervisory dataset with loan applications from Spain. Accounting for time-varying firm heterogeneity in loan demand, we find that tighter monetary and worse economic conditions substantially reduce loan granting, especially from banks with lower capital or liquidity ratios; responding to applications for the same loan, weak banks are less likely to grant the loan. Finally, firms cannot offset the resultant credit restriction by applying to other banks. (JEL E32, E44, E52, G21, G32)

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Section: Resultsmentioning

confidence: 99%

Credit Supply and Monetary Policy: Identifying the Bank Balance-Sheet Channel with Loan Applications

Jiménez

Ongena

Peydró

et al. 2012

American Economic Review

824

458

View full text Add to dashboard Cite

show abstract

“…where Pit, refers to price of total assets of bank i at time t, proxied by the ratio of total revenue to total assets; and MCi,t refers to the marginal cost of bank i at time t. We cannot directly observe marginal cost; hence, we follow the extant literature (e.g., Fernández et al, 2013;Beck et al, 2013) and derive it from a translog cost function (TCF) as in Eq. (6) below : 3 3 3 2 , 1 , 2 , , , , , , , , 1 1 1 3 , , , , 1 ln ln ln ln ln ln ln…”

Section: Measurements Of Variablesmentioning

confidence: 99%

How does banking market power affect bank opacity? Evidence from analysts' forecasts

Fosu

Danso

Agyei‐Boapeah

et al. 2018

International Review of Financial Analysis

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Whilst the ongoing banking regulatory reforms towards a comprehensive Basel III framework emphasise bank transparency, disclosure and a competitive banking market environment, very little is known about the empirical relationship between bank opacity and banking competition. We investigate the impact of competition, as measured by the individual bank's pricing power in the banking market, on bank opacity using a large sample of US bank holding companies over the 1986-2015 period. We uncover new evidence, on the competition-bank opacity nexus, which suggests that banks with higher market power and operating in less competitive banking markets have lower analysts' forecast errors and dispersions and may thus be less opaque. This effect is more pronounced for the 2007-09 global financial crisis period. Our evidence is robust to controlling for analysts' characteristics, bank fixed-effects and endogeneity problems.

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“…While in some countries the efficiency of banking increased with appearance of foreign bank capital (Czech Republic, Croatia, Slovenia), in others it did not undergo significant changes (Poland, Lithuania, Latvia, Hungary), or even led to the deterioration of the financial performance of banks (Estonia, Bulgaria, Romania) (Kuznyetsova et al, 2007;Yershov, 2005). Some scientists claim that banks with foreign capital are more efficient than state banks of countries and banks with private national capitals (Fernandez et al, 2010;Bonin et al, 2004). Assessment of the efficiency of foreign bank performance in Poland, made by Havrylchuk (2006), testified to increased efficiency of activity of only newly setup banks with foreign capital, while functioning Polish banks acquired by foreign investors did not show any significant changes in their performance (Havrylchuk, 2006), or even, according to some estimates, showed some performance deterioration (Yershov, 2005).…”

Section: Literature Reviewmentioning

confidence: 99%

“…= 46.028; F tabl. = 9.15 R = 0.98409323; R 2 = 0.96843949; p = 0.00012 6 Money supply, UAH mln (у 6 ) F( 7, 3 ) calc. = 22140.0; F tabl.…”

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confidence: 99%

Assessment of financial and economic security of Ukraine in conditions of foreign banking development

Vladychyn

Skomorovych

Lobozynska

2018

Banks and Bank Systems

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The article assesses the influence of foreign banks on the financial and economic security of Ukraine. A scientific and methodological approach to the determination of the influence of foreign banks on the financial and economic security of the state using the correlation and regression analysis as well as scenario approach is offered. Such approach reflects mutual links between the indicators of foreign banking and the main indicators of financial and economic security of Ukraine. On the basis of analysis of foreign banking development, the indicators of financial and economic security of Ukraine have been forecasted. Positive and negative consequences of such influence in conditions of cyclic and crisis development of the national economy and bank system have been substantiated.

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How do bank competition, regulation, and institutions shape the real effect of banking crises? International evidence

Cited by 45 publications

References 42 publications

Credit Supply and Monetary Policy: Identifying the Bank Balance-Sheet Channel with Loan Applications

Credit Supply and Monetary Policy: Identifying the Bank Balance-Sheet Channel with Loan Applications

How does banking market power affect bank opacity? Evidence from analysts' forecasts

Assessment of financial and economic security of Ukraine in conditions of foreign banking development

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