The Impact of Institutional Quality on Bank Lending Activity: Evidence from Bayesian Model Averaging
Identifikátory výsledku
Kód výsledku v IS VaVaI
<a href="https://www.isvavai.cz/riv?ss=detail&h=RIV%2F62156489%3A43110%2F17%3A43912771" target="_blank" >RIV/62156489:43110/17:43912771 - isvavai.cz</a>
Výsledek na webu
<a href="http://journal.fsv.cuni.cz/mag/article/show/id/1394" target="_blank" >http://journal.fsv.cuni.cz/mag/article/show/id/1394</a>
DOI - Digital Object Identifier
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Alternativní jazyky
Jazyk výsledku
angličtina
Název v původním jazyce
The Impact of Institutional Quality on Bank Lending Activity: Evidence from Bayesian Model Averaging
Popis výsledku v původním jazyce
The paper investigates the link between macroeconomic shocks, the institutional environment and the responses of bank lending activities to the financial crisis. We hypothesize that property rights and the enforcement of rules are crucial for well-functioning markets, especially in transition and emerging market economies where new institutions were created. The empirical analysis adopts panel regression models with bank fixed effects. Our rich dataset contains 10,565 banks from 66 countries across the whole world. The uncertainty caused by selection of regressors is reduced by Bayesian model averaging. In addition, we put a special emphasis on the dynamic changes of probability to involve selected variables into the model. We identify ownership structures and confirm inverse effects of institutional environment on the government and private banks. We show negative effects of economic freedom, openness and globalization on the lending activity of government banks while low regulations increase lending activity of private banks. We argue that economic and financial openness reduces information asymmetries and increase competition in private banking sector which results in lower net interest margins. On the contrary, lending activity of government bank is supported by political constraints.
Název v anglickém jazyce
The Impact of Institutional Quality on Bank Lending Activity: Evidence from Bayesian Model Averaging
Popis výsledku anglicky
The paper investigates the link between macroeconomic shocks, the institutional environment and the responses of bank lending activities to the financial crisis. We hypothesize that property rights and the enforcement of rules are crucial for well-functioning markets, especially in transition and emerging market economies where new institutions were created. The empirical analysis adopts panel regression models with bank fixed effects. Our rich dataset contains 10,565 banks from 66 countries across the whole world. The uncertainty caused by selection of regressors is reduced by Bayesian model averaging. In addition, we put a special emphasis on the dynamic changes of probability to involve selected variables into the model. We identify ownership structures and confirm inverse effects of institutional environment on the government and private banks. We show negative effects of economic freedom, openness and globalization on the lending activity of government banks while low regulations increase lending activity of private banks. We argue that economic and financial openness reduces information asymmetries and increase competition in private banking sector which results in lower net interest margins. On the contrary, lending activity of government bank is supported by political constraints.
Klasifikace
Druh
J<sub>imp</sub> - Článek v periodiku v databázi Web of Science
CEP obor
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OECD FORD obor
50206 - Finance
Návaznosti výsledku
Projekt
<a href="/cs/project/GA14-28848S" target="_blank" >GA14-28848S: Finanční krize, depreciace a credit crunch v zemích střední a východní Evropy</a><br>
Návaznosti
P - Projekt vyzkumu a vyvoje financovany z verejnych zdroju (s odkazem do CEP)
Ostatní
Rok uplatnění
2017
Kód důvěrnosti údajů
S - Úplné a pravdivé údaje o projektu nepodléhají ochraně podle zvláštních právních předpisů
Údaje specifické pro druh výsledku
Název periodika
Finance a úvěr-Czech Journal of Economics and Finance
ISSN
0015-1920
e-ISSN
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Svazek periodika
67
Číslo periodika v rámci svazku
5
Stát vydavatele periodika
CZ - Česká republika
Počet stran výsledku
24
Strana od-do
372-395
Kód UT WoS článku
000417337200001
EID výsledku v databázi Scopus
2-s2.0-85032262939