Post-Privatization State Ownership and Bank Risk-Taking: Cross-Country Evidence

Boubakri, Narjess; Ghoul, Sadok El; Guedhami, Omrane; Hossain, Mahmud

doi:10.2139/ssrn.3336023

Cited by 6 publications

(9 citation statements)

References 66 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…To further control for any heterogeneity between the banks, a common practice is to include bank fixed effects that capture all the remaining differences between the banks that are time-invariant during the study period (Duchin and Sosyura (2014)). In recent work by Boubakri et al (2020) about the post-privatization state ownership and bank risk taking, the authors control for bank fixed effects as well as (and similarly to discussed variables in sub-section 2.3) for environmental variables of competition within the banking industry, information sharing with the private/public loan registries and creditor rights.…”

Section: Variables In Analysis Of Causal Effects In Bankingmentioning

confidence: 99%

Review of Modern Approaches for Assessing the Effectiveness of Banking

Леонов¹

2021

JAER

View full text Add to dashboard Cite

In the current circumstances of digital transformation of the economy, the study of the efficiency of commercial banks is widely demanded and provides an opportunity for identifying the prerequisites for the formation of a sustainable financial system. Despite the large number of scientific publications in this field, there are no systematic studies that summarize the existing methodological framework for the study of the effectiveness of banking activities. The purpose of the article is to critically analyze the approaches to assessing the efficiency of banking activities and prospects for its improvement in the digital economy. The complexity of assessing the effectiveness of commercial banks consists in the multiplicity of forms of output and resources used for this process. In this study, the author puts forward a hypothesis that the implementation of modern approaches and methods to assess the effectiveness of banking activities can improve the accuracy of the assessment itself, and help identify factors that increase the effectiveness of such activities. The article is based on English-language scientific papers published in between 2016 and 2020 and indexed in the international scientometric database «Web of Science». The author applies the method of systematic bibliographic study of the set of publications, highlights the main discussion issues of the recent years, namely, research methodology, internal efficiency factors, country specifics of banking activities. The article reveals the content, certain issues, and the limits of the applicability of the nonparametric method of data envelopment analysis and the parametric method of stochastic frontier analysis in assessing the effectiveness of activities. Particular attention is paid to the generalization of research results in terms of identifying factors that have a significant impact on the effectiveness of commercial banks: ownership structure, returns to scale, regulation. The author highlights the increasing role of information technology as a key production factor, highlights the phenomenon of breaking the value chain in banking activities, the formation of new business models and the functioning of banking ecosystems. The scientific and practical significance of the article lies in the gain of knowledge, which might provide the basis for the development of measures to improve banking regulation, as well as serve as the framework for the identification of the most effective forms of banking intermediation.

show abstract

Section: Variables In Analysis Of Causal Effects In Bankingmentioning

confidence: 99%

Review of Modern Approaches for Assessing the Effectiveness of Banking

Леонов¹

2021

JAER

View full text Add to dashboard Cite

show abstract

Section: Variables In Analysis Of Causal Effects In Bankingmentioning

confidence: 99%

Bank performance analysis

Zelenyuk¹,

Zelenyuk²

2021

Handbook of Research Methods and Applications in Empirical Microeconomics

View full text Add to dashboard Cite

The goal of this chapter is to overview the current state of the art analysis of banking performance. For this, we navigate through the literature that has been prospering during the recent decades. In particular, we start with a brief discussion of the ratio analysis for measuring bank performance, which is still very popular in practice.Then we consider such popular productivity and efficiency analysis methods as data envelopment analysis (DEA) and stochastic frontier analysis (SFA). Then, we provide a brief review of other econometric methods that became leading in the recent finance literature that involve techniques of casual inference, including difference-in-differences (DD) and regression discontinuity design (RDD).

show abstract

“…To sharpen this procedure, we first conduct propensity score matching between state-owned savings banks and credit limited to La Porta et al (2002), Demirgüç-Kunt and Detragiache (2002), Khwaja and Mian (2005), Carvalho (2014), Sapienza (2004), Dinç (2005), Iannotta et al (2013), Englmaier and Stowasser (2017), Koetter and Popov (2021), Bircan and Saka (2021), and Finan and Mazzocco (2021), suggesting that government-owned banks tend to pursue political rather than social goals, as they are affected by electoral cycles and systems, which induces instability and distorts the proper allocation of funds. On the other hand, there is evidence of the social role of government ownership, as state-owned banks could finance projects for which private banks are unable or unwilling to provide financing (Gerschenkron, 1962;Stiglitz, 1993;Behr et al, 2013), exhibit lower lending cyclicality than privately owned banks and promote local economic development (Bertay et al, 2015;Hakenes et al, 2015;Behr et al, 2017), and studies such as Altunbas et al (2001) and Boubakri et al (2020) find little evidence that private-owned banks are more efficient or less risk-prone than government-owned banks. Similar to this paper, Coleman and Feler (2015) and Aghabarari et al (2021) investigate the relative performance of government-owned banks and credit unions, respectively, during crisis periods.…”

Section: Introductionmentioning

confidence: 99%

The Role of State-Owned Banks in Crises: Evidence from German Banks during COVID-19

2022

SSRN Journal

View full text Add to dashboard Cite

Post-Privatization State Ownership and Bank Risk-Taking: Cross-Country Evidence

Cited by 6 publications

References 66 publications

Review of Modern Approaches for Assessing the Effectiveness of Banking

Review of Modern Approaches for Assessing the Effectiveness of Banking

Bank performance analysis

The Role of State-Owned Banks in Crises: Evidence from German Banks during COVID-19

Contact Info

Product

Resources

About