Bank branches expansion, efficiency and local economic growth

Bernini, Cristina; Brighi, Paola

doi:10.1080/00343404.2017.1380304

Cited by 48 publications

(46 citation statements)

References 47 publications

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“…Non-performance loans, as a percentage of default loans to total loans, was widely used in the literature on banks and risk, and efficiency indicators (Bernini & Brighi, 2017;Delis, Staikouras, & Tsoumas, 2016;Delis & Staikouras, 2011;Morgan & Pontines, 2018;Nguyen, Ta, & Nguyen, 2018;Sahyouni & Wang, 2018;Shihadeh & Liu, 2019). Therefore, this investigation follows the previous studies in using non-performing loans as a risk indicator.…”

Section: Hypothesis Developmentmentioning

confidence: 99%

“…During this process, banks carry out activities that incur such risks as capital and investment losses and defaults on loans. Some of the banking literature uses the branch as bank size and links the number of branches to bank performance and risk, (Bernini & Brighi, 2017;Shihadeh & Liu, 2019). On the topic of branch networks, (Salas & Saurina, 2002) find that, in Spain, networks with more branches incur increases in loan problems within three years among commercial banks, and four years among savings banks.…”

Section: Hypothesis Developmentmentioning

confidence: 99%

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The causal relationship between SME sustainability and banks’ risk

Shihadeh

Gamage

Hannoon

2019

Economic Research-Ekonomska Istraživanja

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This study aims to examine the influence of banks' credit to SMEs on non-performing loans. Many studies find that access to financial sources has become an obstacle to the growth and sustainability of SMEs. This study uses theoretical and empirical approaches to support the study's hypothesis. Data are presented for 15 banks in Palestine, covering the period 2006 to 2016.The study uses empirical techniques regarding to examine the relationship between the variables. Evidence shows that encouraging banks to lend more money to SMEs through the use of a guarantee fund could decrease their risk. Thus, enhancing credit to SMEs could improve the growth and sustainability of these firms. The study recommending policymakers and bank's managers could develop their strategies according to SME's needing. Therefore, enhancing the growth in these firms and reducing the bank's risk. Furthermore, adopting the guarantee funds in developing countries could decrease the bank's risk, thus lending more to SME. The value of this paper comes from the importance of SME in the economic growth and development sustainability. Therefore, there is a need to convince banks to enhance SME credit through a guarantee fund and that extending this type of credit would positively influence banks' activities.

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Section: Hypothesis Developmentmentioning

confidence: 99%

Section: Hypothesis Developmentmentioning

confidence: 99%

The causal relationship between SME sustainability and banks’ risk

Shihadeh

Gamage

Hannoon

2019

Economic Research-Ekonomska Istraživanja

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“…11 11 Since banks are multiproduct firms, opinions vary about whether bank deposits should be considered as input or output. The value‐added approach appropriately represents the productive activity of the banks (see, among many others, Bernini & Brighi, 2018). Conversely, the financial intermediation approach (Sealey Jr & Lindley, 1977) considers bank deposits as input. …”

mentioning

confidence: 99%

Effect of corporate social responsibility scores on bank efficiency: The moderating role of institutional context

Forgione

Laguir

Staglianò

2020

Corp Soc Responsibility Env

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This paper examines how corporate social responsibility (CSR) affects bank efficiency in a sample of large commercial banks across 22 countries over the 2013–2017 period. We used a one‐step model of stochastic frontier analysis for panel data to estimate bank profit efficiency and found that the greater the activities in the social and environmental dimensions of CSR, the lower the level of efficiency, whereas activities in the corporate governance dimension are generally not relevant. This result supports the relevance of agent perspectives for these firms. However, we also found that institutional context moderates this baseline result. Specifically, all CSR activities have a positive impact on bank efficiency in common law countries and countries where the effectiveness of stakeholder protection is high. This supports the view that contexts that favor firms' sustainable behavior also increase bank efficiency.

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“…The positive effects of intrastate branching deregulation on economic performance found by Jayaratne and Strahan (1996) have been confirmed and extended by various studies (e.g., Kerr and Nanda, 2009;Rice and Strahan, 2010;Koetter et al, 2012;Amore et al, 2013;Chava et al, 2013;Krishnan et al, 2014;Tewari, 2014;Krishnamurthy, 2015). In addition to the literature on U.S. banking deregulation, several studies have investigated the effects of bank branch expansion and banking deregulation in European countries such as Spain andItaly (e.g., Carbó Valverde et al, 2003, 2007;Pastor et al, 2017;Bernini and Brighi, 2018).…”

Section: Introductionmentioning

confidence: 71%

US Banking Deregulation and Local Economic Growth: Direct Effects and Externalities

2019

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This study investigates the effects of banking deregulation on county-level economic growth in the U.S. during the 1970-2000 period. Our main contribution to the literature is that we analyze both the direct and external effects of banking deregulation on local economic growth. For the regions South, West and Northeast, we find significantly positive long-run direct effects of intrastate branching deregulation on the expected growth rates of counties in the deregulated state itself, up to several percentage points. We also establish significantly positive long-run external effects on the expected growth rates of counties adjacent to the deregulated state, up to several tenths of percentage points. We do not find such robust effects for interstate banking deregulation.

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Bank branches expansion, efficiency and local economic growth

Cited by 48 publications

References 47 publications

The causal relationship between SME sustainability and banks’ risk

The causal relationship between SME sustainability and banks’ risk

Effect of corporate social responsibility scores on bank efficiency: The moderating role of institutional context

US Banking Deregulation and Local Economic Growth: Direct Effects and Externalities

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