Bezpieczny Bank nr 4 (78) 2018, s. 27-41
https://doi.org/10.26354/bb.2.4.73.2018

Renata Karkowska
https://orcid.org/0000-0002-6335-2973
Department of Insurance and Capital Markets, Faculty of Management, University of Warsaw

Magdalena Pruszyńska
https://orcid.org/0000-0002-6340-936X
Faculty of Management, University of Warsaw

Financial Liberalization as a Determinant of Banks’ Efficiency

Liberalizacja finansowa jako determinanta efektywności banków

Abstract

Contemporary pressures to enhance supervision and regulation of financial intermediation are aimed at increasing the efficiency of financial market functioning and the resilience of the global financial system to disturbances in its operation. The purpose of this paper is to evaluate the impact of financial liberalization on the banking sector efficiency. The analysis answers the following questions: Does financial liberalization affect changes in the banking sector cost/income ratio? How did the relationship between financial liberalization and European banks’ efficiency develop in 1995-2015? The research was conducted for 28 European countries between 1995 and 2015 divided into two periods: before the financial crisis (1995-2008) and after the crisis (2009-2015).

Key words: banking sector, financial liberalization, efficiency, ratio of costs to revenues

Streszczenie

Współczesna presja na wzmocnienie nadzoru i regulacji pośrednictwa finansowego ma na celu zwiększenie efektywności funkcjonowania rynku finansowego i odporności globalnego systemu finansowego na zakłócenia jego funkcjonowania. Celem artykułu jest ocena wpływu liberalizacji finansowej na efektywność sektora bankowego. Analiza ma za zadanie odpowiedzi na następujące pytania: Czy liberalizacja finansowa wpływa na zmiany relacji kosztów do dochodów sektora bankowego? W jaki sposób związek między liberalizacją finansową a efektywnością europejskich banków rozwijał się w latach 1995-2015? Badania przeprowadzono dla 28 krajów europejskich w latach 1995-2015 w dwóch okresach: przed kryzysem finansowym (1995-2008) i po kryzysie (2009-2015).

Słowa kluczowe: sektor bankowy, liberalizacja finansowa, efektywność, współczynnik kosztów do przychodów

JEL: G1, G21, G32, G39

Bibliografia

Andries A. Capraru B., 2013, Impact of Financial Liberalization on Banking Sectors Performance from Central and Eastern European Countries, PLoS ONE 8(3): e59686. https://doi.org/10.1371/journal.pone.0059686.
Arellano, M., Bond, S., 1991. Some tests of specification for panel data: Monte Carlo evidence and an application to employment equations. Review of Economic Studies, 58: 277-297. http://dx.doi.org/10.2307/2297968.
Blundell, R., Bond, S., 1998. Initial conditions and moment conditions in dynamic panel data models. Journal of Econometrics, 87: 115-143.
Barth J., Lin C., Ma Y., Seade J., Song F., 2010, Do bank regulation, supervision and monitoring enhance or impede bank efficiency? Journal of Banking & Finance, 37(8): 2879-2892. http://dx.doi.org/10.1016/j.jbankfin.2013.04.030.
Barth J., Gerad C., Ross L., 2006, Rethinking Bank Regulation: Till Angels Govern, Cambridge University Press, Cambridge, U.K. http://dx.doi.org/10.1017/CBO9780511753817.002.
Bond, S., Windmeijer, F. 2002, Finite sample inference for GMM estimators in linear panel data models: A comparison of alternative tests. London: Mimeo, Institute for fiscal studies. http://dx.doi.org/10.2139/ssrn.311061.
Bumann S., Hermes N., Lensink R., 2013, Financial liberalization and economic growth: A meta-analysis, Journal of International Money and Finance 33: 255–281. http://dx.doi.org/10.1016/j.jimonfin.2012.11.013.
Bouzgarrou, H., Jouida, S., Louhichi, W., 2017, Bank profitability during and before the financial crisis: Domestic vs. foreign banks, Research in International Business and Finance January. http://dx.doi.org/10.1016/j.ribaf.2017.05.011.
Caballero, J.A., 2016. Do surges in international capital inflows influence the likelihood of banking crises? The Economic Journal 126, 281–316, https://doi.org/10.1111/ecoj.12172.
Chortareas, G.E., Girardone, C., Ventouri, A., 2013, Financial freedom and bank efficiency: Evidence from the European Union, Journal of Banking and Finance April 37(4): 1223-1231. http://dx.doi.org/10.1016/j.jbankfin.2012.11.015.
Demirguc-Kunt, A., Laeven, L., Levine, R., 2004, Regulations, market structure, institutions and the cost of financial intermediation, Journal of Money, Credit, and Banking 36, 593–622. http://dx.doi.org/10.1353/mcb.2004.0045.
Degl’Innocenti, M., Matousek, R., Sevic, Z., Tzeremes, N. G., 2017, Bank efficiency and financial centres: Does geographical location matter?, Journal of International Financial Markets, Institutions & Money January 46: 188-198. http://dx.doi.org/10.1016/j.intfin.2016.10.002.
Demirgüc-Kunt, A., Detragiache, E., 2002. Does deposit insurance increase banking system stability? An empirical investigation. Journal of Monetary Economics 49, 1373–1406.
Dreher A., 2006, Does Globalization Affect Growth? Empirical Evidence from a new Index, Applied Economics 38, 10: 1091-1110. http://dx.doi.org/10.2139/ssrn.348860.
Fang, Yiwei, Hasan, Iftekhar, Marton, Katherin, 2011, Bank efficiency in South-Eastern Europe, Economics of Transition July 19 (3): 495-520. http://dx.doi.org/10.1111/j.1468-0351.2011.00420.x.
Fielding, D., Rewilak, J., 2015. Credit booms, financial fragility and banking crises. Economics Letters 136, 233–236.
Hughes J., Mester L., 2015, Measuring the performance of banks: theory, practice, evidence and some policy implications, The Oxford Handbook of Banking, second edition. Oxford University Press: 247–270. http://dx.doi.org/10.2139/ssrn.2306003.
Ghosh, Amit, 2016, How does banking sector globalization affect banking crisis?, Journal of Financial Stability August 25:70-82. http://dx.doi.org/10.1016/j.jfs.2016.07.003
Hamdaoui, Mekki, 2017, Financial liberalization and systemic banking crises: A meta-analysis, International Economics December 152: 26-54. http://dx.doi.org/10.1016/j.inteco.2017.08.002
Hermes N., Meesters, A, 2015, Financial liberalization, financial regulation and bank efficiency: a multi-country analysis, Applied Economics 47(21): 2154-2172. http://dx.doi.org/10.1080/00036846.2015.1005815
Isik, I., Hassan, M.K., 2003. Financial deregulation and total factor productivity change: an empirical study of Turkish commercial banks. Journal of Banking and Finance 27, 1455–1485.
Karkowska R. (2015), Ryzyko systemowe. Charakter i źródła indywidualizacji w sektorze bankowym, Wydawnictwo Wolters Kluwer, Kraków.
Laeven L., Ross L., 2009, Bank governance, regulation and risk taking, Journal of Financial Economics 93: 259–275. http://dx.doi.org/10.1016/j.jfineco.2008.09.003
Levine, R., 2001. International financial liberalization and economic growth. Review of International Economics 9, 688–702.
Lin, K., Doan, A., Doong, S., 2016, Changes in ownership structure and bank efficiency in Asian developing countries: The role of financial freedom, International Review of Economics and Finance May 43:19-34. http://dx.doi.org/ 10.1016/j.iref.2015.10.029
Petria, N., Capraru, B., Ihnatov, I., 2015, Determinants of Banks’ Profitability: Evidence from EU 27 Banking Systems, Globalization and Higher Education in Economics and Business Administration – GEBA 2013, Procedia Economics and Finance 20: 518-524. http://dx.doi.org/ 10.1016/S2212-5671(15)00104-5
Poposka, K., Trpkoski, M, 2016, Bank Profitability Prior and after TheCrisis: Evidence From Selected Balkan Transitional Economies, EconomicDevelopment/Ekonomiski Razvoj June, 18 (1/2): 309-336. (link do stron: http://www.ek-inst.ukim.edu.mk/images/docs/ED/ED-18-12-2016/19-BANK-PROFITABILITY-PRIOR-AND-AFTER-THE-CRISIS-EVIDENCE-FROM-SELECTED-BALKAN-TRANSITIONAL-ECONOMIES.pdf; https://www.ceeol.com/search/article-detail?id=411303)
Psillaki, M., Mamatzakis, E., 2017, What drives bank performance in transitions economies? The impact of reforms and regulations, Research in International Business and Finance January 39 (A) :578-594. https://doi.org/10.1016/j.ribaf.2016.09.010
Sufian, F., Habibullah, M. S., 2012, Globalizations and bank performance in China, Research in International Business and Finance May 26(2): 221-239. http://dx.doi.org/10.1016/j.ribaf.2011.12.005
Sufian, F., Kamarudin, F., 2016, The impact of globalization on the performance of Banks in South Africa, Review of International Business & Strategy, 26 (4): 517-542. http://dx.doi.org/10.1108/RIBS-02-2016-0003
Windmeijer F., 2005, A finite sample correction for the variance of linear efficient two-step GMM estimators, Journal of Econometrics, 126, 25–51. http://dx.doi.org/10.1016/j.jeconom.2004.02.005

Pełny tekst artykułu w pdf: