BIROn - Birkbeck Institutional Research Online

    What drives bank performance in transitions economies? The impact of reforms and regulations

    Psillaki, M. and Mamatzakis, Emmanuel (2017) What drives bank performance in transitions economies? The impact of reforms and regulations. Research in International Business and Finance 39 , pp. 578-594. ISSN 0275-5319.

    [img]
    Preview
    Text
    30869.pdf - Author's Accepted Manuscript
    Available under License Creative Commons Attribution Non-commercial No Derivatives.

    Download (357kB) | Preview

    Abstract

    This paper investigates the effects of financial regulations and structural reforms on the cost efficiency of the banking industries of 10 Central and Eastern European (CEE) countries for the period 2004–2009. Cost efficiency scores are estimated using stochastic frontier analysis, whilst panel regressions examine the impact of regulation and liberalisation on bank performance using the EBRD transitional reform indicator and the Fraser economic freedom index. By considering both indexes we are able to account for the effects of progress towards more sound banking practices as well as the impact of the credit market, labor market and business sector regulatory regimes on bank efficiency. Our empirical analysis shows that structural reforms on labor and business markets exert a positive impact on bank performance. In line with the public interest view, we find the effect of credit regulation banking on cost efficiency is positive. We also find that better capitalized banks are more cost efficient.

    Metadata

    Item Type: Article
    School: School of Business, Economics & Informatics > Management
    Depositing User: Emmanuel Mamatzakis
    Date Deposited: 06 Mar 2020 14:34
    Last Modified: 05 Jul 2020 12:35
    URI: https://eprints.bbk.ac.uk/id/eprint/30869

    Statistics

    Downloads
    Activity Overview
    54Downloads
    21Hits

    Additional statistics are available via IRStats2.

    Archive Staff Only (login required)

    Edit/View Item Edit/View Item