Does Greater Capital Hamper the Cost Efficiency of Banks? A Bi-causal Analysis
Identifikátory výsledku
Kód výsledku v IS VaVaI
<a href="https://www.isvavai.cz/riv?ss=detail&h=RIV%2F00216208%3A11230%2F16%3A10329368" target="_blank" >RIV/00216208:11230/16:10329368 - isvavai.cz</a>
Výsledek na webu
<a href="http://econpapers.repec.org/RePEc:pal:compes:v:58:y:2016:i:3:d:10.1057_s41294-016-0002-4" target="_blank" >http://econpapers.repec.org/RePEc:pal:compes:v:58:y:2016:i:3:d:10.1057_s41294-016-0002-4</a>
DOI - Digital Object Identifier
<a href="http://dx.doi.org/10.1057/s41294-016-0002-4" target="_blank" >10.1057/s41294-016-0002-4</a>
Alternativní jazyky
Jazyk výsledku
angličtina
Název v původním jazyce
Does Greater Capital Hamper the Cost Efficiency of Banks? A Bi-causal Analysis
Popis výsledku v původním jazyce
The aim of our research is to analyze the relation between capital and bank efficiency by considering both directions of the Granger causality for the Czech banking industry. We use an exhaustive dataset of Czech banks from 2002 to 2013. We measure the cost efficiency of banks using stochastic frontier analysis. We perform Granger-causality tests to check the sign and significance of the causal relation between capital and efficiency. We embed Granger-causality estimations in the GMM dynamic panel estimator. We find no relation between capital and efficiency, as neither the effect of capital on efficiency, nor the effect of efficiency on capital is significant. The financial crisis does not influence the relation between capital and efficiency. Our findings suggest that tighter capital requirements like those under Basel III do not affect financial stability through the efficiency channel. Policies favoring capital levels and efficiency of the banking industry can therefore be designed separately.
Název v anglickém jazyce
Does Greater Capital Hamper the Cost Efficiency of Banks? A Bi-causal Analysis
Popis výsledku anglicky
The aim of our research is to analyze the relation between capital and bank efficiency by considering both directions of the Granger causality for the Czech banking industry. We use an exhaustive dataset of Czech banks from 2002 to 2013. We measure the cost efficiency of banks using stochastic frontier analysis. We perform Granger-causality tests to check the sign and significance of the causal relation between capital and efficiency. We embed Granger-causality estimations in the GMM dynamic panel estimator. We find no relation between capital and efficiency, as neither the effect of capital on efficiency, nor the effect of efficiency on capital is significant. The financial crisis does not influence the relation between capital and efficiency. Our findings suggest that tighter capital requirements like those under Basel III do not affect financial stability through the efficiency channel. Policies favoring capital levels and efficiency of the banking industry can therefore be designed separately.
Klasifikace
Druh
J<sub>x</sub> - Nezařazeno - Článek v odborném periodiku (Jimp, Jsc a Jost)
CEP obor
AH - Ekonomie
OECD FORD obor
—
Návaznosti výsledku
Projekt
—
Návaznosti
S - Specificky vyzkum na vysokych skolach
Ostatní
Rok uplatnění
2016
Kód důvěrnosti údajů
S - Úplné a pravdivé údaje o projektu nepodléhají ochraně podle zvláštních právních předpisů
Údaje specifické pro druh výsledku
Název periodika
Comparative economic studies
ISSN
0888-7233
e-ISSN
—
Svazek periodika
58
Číslo periodika v rámci svazku
3
Stát vydavatele periodika
US - Spojené státy americké
Počet stran výsledku
21
Strana od-do
409-429
Kód UT WoS článku
000391066900006
EID výsledku v databázi Scopus
2-s2.0-85010986729