Bank survival in Central and Eastern Europe

Kód výsledku v 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>

Výsledek na webu

<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>

Jazyk výsledku

angličtina

Název v původním jazyce

Bank survival in Central and Eastern Europe

Popis výsledku v původním jazyce

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.

Název v anglickém jazyce

Bank survival in Central and Eastern Europe

Popis výsledku anglicky

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.

Druh

J_imp - Článek v periodiku v databázi Web of Science

CEP obor

—

OECD FORD obor

50201 - Economic Theory

Projekt

—

Návaznosti

I - Institucionalni podpora na dlouhodoby koncepcni rozvoj vyzkumne organizace

Rok uplatnění

2020

Kód důvěrnosti údajů

S - Úplné a pravdivé údaje o projektu nepodléhají ochraně podle zvláštních právních předpisů

Název periodika

International Review of Economics and Finance

ISSN

1059-0560

e-ISSN

—

Svazek periodika

69

Číslo periodika v rámci svazku

September

Stát vydavatele periodika

NL - Nizozemsko

Počet stran výsledku

19

Strana od-do

860-878

Kód UT WoS článku

000569440600013

EID výsledku v databázi Scopus

2-s2.0-85089382624