Manthos, Delis and Iftekhar, Hasan and Pantelis, Kazakis (2010): Bank regulations and income inequality: Empirical evidence.
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This paper provides cross-country evidence that variations in bank regulatory policies result in differences in income distribution. In particular, market discipline (private monitoring) and activity restrictions have an unambiguously positive and significant effect on income inequality and poverty, and this effect holds regardless of the level of economic and institutional development. In contrast, more stringent bank capital regulation and enhanced official supervisory power tend to reduce income inequality. However, this latter effect fades away for countries with low levels of economic and institutional development. We contend that these findings have new implications for the effects of bank regulations besides those related to their impact on financial stability.
|Item Type:||MPRA Paper|
|Original Title:||Bank regulations and income inequality: Empirical evidence|
|Keywords:||Bank regulations; Income inequality; Cross-country panel data|
|Subjects:||O - Economic Development, Innovation, Technological Change, and Growth > O1 - Economic Development > O15 - Human Resources ; Human Development ; Income Distribution ; Migration
O - Economic Development, Innovation, Technological Change, and Growth > O1 - Economic Development > O16 - Financial Markets ; Saving and Capital Investment ; Corporate Finance and Governance
G - Financial Economics > G2 - Financial Institutions and Services > G28 - Government Policy and Regulation
|Depositing User:||Manthos Delis|
|Date Deposited:||11. Dec 2010 20:22|
|Last Modified:||13. Feb 2013 00:42|
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