Bank survival in Central and Eastern Europe
The result's identifiers
Result code in IS VaVaI
<a href="https://www.isvavai.cz/riv?ss=detail&h=RIV%2F00216208%3A11230%2F20%3A10413711" target="_blank" >RIV/00216208:11230/20:10413711 - isvavai.cz</a>
Result on the web
<a href="https://verso.is.cuni.cz/pub/verso.fpl?fname=obd_publikace_handle&handle=Lx.5JxCFoL" target="_blank" >https://verso.is.cuni.cz/pub/verso.fpl?fname=obd_publikace_handle&handle=Lx.5JxCFoL</a>
DOI - Digital Object Identifier
<a href="http://dx.doi.org/10.1016/j.iref.2020.06.020" target="_blank" >10.1016/j.iref.2020.06.020</a>
Alternative languages
Result language
angličtina
Original language name
Bank survival in Central and Eastern Europe
Original language description
We analyze factors linked to bank survival on large dataset covering 17 CEE markets during the period of 2007-2015 by estimating the Cox proportional hazards model. We group banks across countries and according to their financial soundness. The overall financial development improves survival probabilities and its impact exhibits decreasing marginal returns as it is strongest in countries with lower level of financial development and banking reforms and in banks with low level of solvency. Measures of ownership structure, legal form, and corporate governance are the key economically significant factors that exhibit strongest economic effect on bank survival. Financial performance indicators predict bank survival rate with intuitively expected positive impact but their effect, in terms of economic significance, is smaller in comparison to other factors as well as the impact found in developed markets. Effect of above factors is most pronounced for banks with low financial soundness in term of their solvency. Results also appear to indicate that it makes exit more likely during the global financial crisis, shortly afterwards, and during the initial stage of the European sovereign debt crisis. This result is critical for central banks due to their regulatory and governance mandate. The results are robust with respect to size, age, and alternative assumptions on survival distribution.
Czech name
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Czech description
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Classification
Type
J<sub>imp</sub> - Article in a specialist periodical, which is included in the Web of Science database
CEP classification
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OECD FORD branch
50201 - Economic Theory
Result continuities
Project
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Continuities
I - Institucionalni podpora na dlouhodoby koncepcni rozvoj vyzkumne organizace
Others
Publication year
2020
Confidentiality
S - Úplné a pravdivé údaje o projektu nepodléhají ochraně podle zvláštních právních předpisů
Data specific for result type
Name of the periodical
International Review of Economics and Finance
ISSN
1059-0560
e-ISSN
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Volume of the periodical
69
Issue of the periodical within the volume
September
Country of publishing house
NL - THE KINGDOM OF THE NETHERLANDS
Number of pages
19
Pages from-to
860-878
UT code for WoS article
000569440600013
EID of the result in the Scopus database
2-s2.0-85089382624