Oil booms, bank productivity and natural resource curse in finance

Adetutu, Morakinyo O.; Odusanya, Kayode; Ebireri, John E.; Murinde, Victor

doi:10.1016/j.econlet.2019.07.002

Cited by 13 publications

(12 citation statements)

References 19 publications

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“…Although these coefficients are not significant (Models 4 and 9 represents an exception), they suggest that the short-run impact of the shock is negative, result that explains the findings of Adetutu et al (2020), stating that an oil price boom negatively affects the bank performances in Kazakhstan, which similar to Russia, represents an oil-exporting country. Indeed, in the short-run, the domestic consumption slows down following a sudden increase in oil prices, which in turn negatively affects companies' performances and their capacity to fulfil their financial obligations.…”

Section: Resultsmentioning

confidence: 88%

“…diversification (García-Kuhnert et al, 2015;Li, 2019;Ur Rehman et al, 2020), (iii) nontraditional banking activities (De Jonghe, 2010;Wagner, 2010;Duport et al, 2018;Fina Katmani, 2019), (iv) bank business models (Sudrajad and Hübner, 2019), (v) sovereign risk (Deev and Hodula, 2016), (vi) monetary policy uncertainty (Albulescu and Ionescu, 2018), and (vii) regulatory framework (Ahamed and Mallick, 2017). Recently, a new strand of the literature emerged, investigating the influence of international oil prices on bank stability (Khandelwal et al, 2016;Al-Khazali and Mirzaei, 2017;Miyajima, 2017;Lee and Lee, 2019) and bank performance (Adetutu et al, 2020).…”

Section: Bank Stability Determinants: a Review Of The Literaturementioning

confidence: 99%

“…Their results reveal that oil prices negatively affect the bank performance. A different approach is taken by Adetutu et al (2020) for Kazakhstan, the authors investigating the role of international oil prices in explaining the bank performance. Their results show that oil price booms negatively influence the banks' total productivity.…”

Section: Bank Stability Determinants: a Review Of The Literaturementioning

confidence: 99%

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Bank Financial Stability and International Oil Prices: Evidence from Listed Russian Public Banks

Albulescu

2022

Eastern European Economics

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Using data on 17 listed public banks from Russia over the period 2008 to 2016, we analyse whether international oil prices affect the bank stability in an oil-dependent country. We resort to a Pool Mean Group (PMG) estimator, and we show that an increase in oil prices has a longrun positive effect on Russian public banks stability. While positive oil-price shocks contribute to bank stability in the long run, an opposite effect is recorded for negative shocks. However, no significant impact is documented in the short run. Our findings are robust to different bank stability specifications and different samples.

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Section: Resultsmentioning

confidence: 88%

Section: Bank Stability Determinants: a Review Of The Literaturementioning

confidence: 99%

Section: Bank Stability Determinants: a Review Of The Literaturementioning

confidence: 99%

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Bank Financial Stability and International Oil Prices: Evidence from Listed Russian Public Banks

Albulescu

2022

Eastern European Economics

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“…They claimed that sustainable technologies could turn China's "resource curse" into "resource blessing". Another study (Adetutu et al 2020) examined the influence of oil booms on bank productivity in Kazakhstan, using monthly data from 2008 to 2017. There was a significant decrease in total factor productivity of banks during the commodity shocks, with this negative effect being more pronounced in banks with higher exposure to foreign currency.…”

Section: Empirical Literature Reviewmentioning

confidence: 99%

The role of natural resources in financial expansion: evidence from Central Asia

Isiksal¹

2023

Financ Innov

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Central Asian States (CAS) have diverse natural resources. This research aims to shed light on the finance–natural resource’s association in the context of CAS namely Kazakhstan, Kyrgyzstan, Tajikistan, Turkmenistan, and Uzbekistan in 1996–2020 using the cross-sectionally augmented autoregressive distributed lag technique. It seeks to examine the research question, “What is the effect of natural resource wealth on the financial expansion (FE) of Central Asia?” The results demonstrated an inverted U-shaped association between financial growth and natural resource rents. It implies that natural resources are initially a “resource blessing” that later becomes a “resource curse.” Additionally, the effect of institutional quality (INQ) and human development (HD) on financial growth is examined. The results reveal that INQ and HD positively affect FE. Moreover, a bidirectional causal relationship exists between FE and INQ. Finally, all variables contribute to a long term FE. Based on these outcomes, the major policy recommendations are that the CAS authorities diversify their financial services and products and direct the proceeds from natural resource rents to effective investments particularly in HD. In addition, the social and political infrastructures in CAS must be restructured to achieve a high-quality institutional environment, which is necessary to increase the role of the private sector.

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“…The relevant literature reveals that studies on the TFP of banks have mainly focused on external and internal influencing factors. Regarding the external influence factors of banks' TFP, the literature primarily discusses the impact of policy reforms, financial liberalization, and natural resources on banks' TFP (Adetutu et al, 2020). As for internal influence factors, most studies explored the impact on TFP of commercial banks from the perspective of operational efficiency and ownership structure.…”

Section: Introductionmentioning

confidence: 99%

Digitalization and the “Too Big to Fail” Dilemma: Mechanisms and Asymmetric Effects of Banks’ Fintech Innovation on Total Factor Productivity

Li,

Zhang,

2024

Technological and Economic Development of Economy

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Fintech is driving the revolution of finance and profoundly affecting the development of the financial sector. However, few studies examined how commercial banks’ fintech innovation affects total factor productivity (TFP). To build up the fintech index of commercial banks, we use web crawler technology to accumulate news related to the fintech innovation of commercial banks in Baidu news. We use the panel data of 72 banks in China from 2010 to 2020 to explore the impacts and mechanisms of fintech on commercial banks’ TFP. The results show that fintech innovation effectively improves TFP after a series of robustness tests. Further, we find that fintech innovation can improve commercial banks’ TFP by promoting innovations of financial products, increasing risk control capability, reducing cost, and improving profit. Also, the utility of fintech is more significant in banks with more assets, facilities, and human capital, which means that fintech innovation creates a “bigger is better” mindset. Meanwhile, the result of quantile regression shows that the higher the fintech innovation, the more significant the increase in TFP, which further reveals that there is ‘too big to fail’ among commercial banks under digitalization.

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Oil booms, bank productivity and natural resource curse in finance

Cited by 13 publications

References 19 publications

Bank Financial Stability and International Oil Prices: Evidence from Listed Russian Public Banks

Bank Financial Stability and International Oil Prices: Evidence from Listed Russian Public Banks

The role of natural resources in financial expansion: evidence from Central Asia

Digitalization and the “Too Big to Fail” Dilemma: Mechanisms and Asymmetric Effects of Banks’ Fintech Innovation on Total Factor Productivity

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