Munich Personal RePEc Archive

Regulations and productivity growth in banking

Delis, Manthos D and Molyneux, Philip and Pasiouras, Fotios (2009): Regulations and productivity growth in banking.

[img]
Preview
PDF
MPRA_paper_13891.pdf

Download (223kB) | Preview

Abstract

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.

UB_LMU-Logo
MPRA is a RePEc service hosted by
the Munich University Library in Germany.