Bank regulation and efficiency: Evidence from transition countries

Authors: Djalilov, K., Piesse, J.

Journal: International Review of Economics and Finance

Publication Date: 01/11/2019

Volume: 64

Pages: 308-322

ISSN: 1059-0560

DOI: 10.1016/j.iref.2019.07.003

Abstract:

Given the nascent nature of banking sectors in transition countries and their unique institutional settings, this paper documents the effects of regulation on the efficiency of banks using system GMM and dynamic panel quantile regressions for 21 transition countries for the period 2002–2014. Within the system GMM estimation the paper finds bank activity restrictions to be the only regulation improving banking efficiency in these countries. However, the dynamic panel quantile results show that the regulation has different effects at different quantiles. This study provides important policy implications related to banking regulation in transition economies.

https://eprints.bournemouth.ac.uk/32597/

Source: Scopus