Delis, Manthos D and Molyneux, Philip and Pasiouras, Fotios (2009): Regulations and productivity growth in banking.
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This paper examines the relationship between the regulatory and supervision framework and the productivity of banks in 22 countries over the period 1999-2006. We follow a semi-parametric two-step approach that combines Malmquist index estimates with bootstrap regressions. The results indicate that regulations and incentives that promote private monitoring have a positive impact on productivity. Restrictions on banks’ activities relating to their involvement in securities, insurance, real estate and ownership of non-financial firms also have a positive impact. However, regulations relating to the first and second pillars of Basel II, namely capital requirements and official supervisory power do not appear to have a statistically significant impact on productivity.
|Item Type:||MPRA Paper|
|Original Title:||Regulations and productivity growth in banking|
|Keywords:||Banks; Basel II; Productivity; Regulations|
|Subjects:||C - Mathematical and Quantitative Methods > C1 - Econometric and Statistical Methods and Methodology: General > C14 - Semiparametric and Nonparametric Methods: General
G - Financial Economics > G2 - Financial Institutions and Services > G21 - Banks; Depository Institutions; Micro Finance Institutions; Mortgages
|Depositing User:||Manthos Delis|
|Date Deposited:||10. Mar 2009 05:42|
|Last Modified:||13. Feb 2013 13:05|
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