Banking sector performance and economic growth: evidence from Southeast European countries

Zeqiraj, Veton; Hammoudeh, Shawkat; İskenderoğlu, Ömer; Tiwari, Aviral Kumar

doi:10.1080/14631377.2019.1640988

Cited by 30 publications

(20 citation statements)

References 43 publications

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“…Nevertheless, the role of the banking industry in economic growth was included in the research constituents in the recent decade. For example, Xu, Santana and a few more scholars investigated the correlation between financial intermediation and economic growth [ 57 , 60 , 61 ]. In recent years, scholars extended the banking-related research constituents to diverse areas.…”

Section: Research Directionsmentioning

confidence: 99%

“…All commercial banks need to improve managerial efficiency Moudud-Ul-Huq [ 62 ] Quantitative Investigated the relationship between risk-taking behaviour and banks’ competition performance competition-stability theory, quiet life hypothesis. Structure-conduct-performance GMM, panel data Bank size heterogeneously affects bank performance and risk-taking behaviour in emerging countries, and competition substantially affects bank performance Santana [ 57 ] Quantitative Investigated the effects of banking crises and financial liberalisation on the relationship between financial development and economic growth GMM, Dynamic panel data Financial liberalisation did not show a positive relationship between financial development and economic growth due to the emergence and recurrence of banking crises Zeqiraj et al [ 61 ] Quantitative Investigated the dynamic impact of banking sector performance on economic growth GMM, Dynamic panel data The banking sector showed a significant positive effect on economic growth. It implied that banking efficiency is one of the key determinants of overall economic growth Adesina [ 37 ] Quantitative Examined the effect of human capital efficiency on the link between diversification and bank performance Intermediation SFA, Tobit regression Higher diversification reduces bank performance in three ways; cost efficiency, profitability and financial stability.…”

Section: Appendix 1: Reviewed Documentsmentioning

confidence: 99%

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Research evolution in banking performance: a bibliometric analysis

2021

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Banking performance has been regarded as a crucial factor of economic growth. Banks collect deposits from surplus and provide loans to the investors that contribute to the total economic growth. Recent development in the banking industry is channelling the funds and participating in economic activities directly. Hence, academic researchers are gradually showing their concern on banking performance and its effect on economic growth. Therefore, this study aims to explore the academic researchers on this particular academic research article. By extracting data from the web of Science online database, this study employed the bibliometrix package (biblioshiny) in the ‘R’ and VOSviewer tool to conduct performance and science mapping analyses. A total of 1308 research documents were analysed, and 36 documents were critically reviewed. The findings exhibited a recent growth in academic publications. Three major themes are mainly identified, efficiency measurement, corporate governance effect and impact on economic growth. Besides, the content analysis represents the most common analysis techniques used in the past studies, namely DEA and GMM. The findings of this study will be beneficial to both bank managers and owners to gauge a better understanding of banking performance. Meanwhile, academic researchers and students may find the findings and suggestions to study in the banking area.

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Section: Research Directionsmentioning

confidence: 99%

Section: Appendix 1: Reviewed Documentsmentioning

confidence: 99%

Research evolution in banking performance: a bibliometric analysis

2021

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“…Following identical shocks, they found that these models predict significant changes in bank lending that occur much faster and have much greater effects on the real economy. Zeqiraj et al (2020) employ a dynamic panel generalized methods of moments (GMM) to study the dynamic effect of banking system performance on general economic growth in 13 Southeast European economies during the period of study from 2000 to 2015 by considering investment, human capital, trade openness and among additional variables. Their most important results indicate the existence of a positive and considerable influence of banking system performance on global economic growth, which suggests that banking system effectiveness is amongst the most important contributing factor of global economic growth.…”

Section: Literature Reviewmentioning

confidence: 99%

Money creation process, banking performance and economic policy uncertainty: evidence from Tunisian listed banks

Khalfaoui

Derbali

2021

IJSE

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PurposeThis paper aims to investigate the relationship between money creation process and banking performance for Tunisian listed banks, particularly in the context of increased economic policy uncertainty.Design/methodology/approachIn the relevant literature, there are two theories of money creation. The theory of money creation out of nothing, by using the central bank for refinancing and the theory of financial intermediation, from which money creation is made from preexisting savings. In this paper, the authors utilize a panel data for a sample composed of 11 Tunisian banks during the period of study from 1999 to 2019.FindingsThe study’s empirical analysis show that both forms of money creation have a positive impact on bank profitability as measured by the return on assets (ROA) and return on equity (ROE) ratios. However, the same analysis shows that the channel of money creation out of nothing is the most profitable for banks. Also, the authors show that economic policy uncertainty negatively influences the relationship between money creation and banking profitability only when credit creation is derived from savings.Originality/valueThis paper contributes to the literature by explaining the nexus between money creation and Tunisian banking performance which depends on the implementation of stable and conducive economic and political environment. Also, this link requires the implementation of monetary measures to encourage savings and develop an efficient capital market and judicious monetary policy enabling the central bank to inject more liquidity into the economy.

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“…By applying the generalized method of moments to panel data, Zeqiraj et al (2020) determined the positive and significant influence of the banking sector performance on economic growth in a total of 13 Southeastern European countries in the period from 2000 to 2015. The hypothesis implying the existence of a positive relationship between the loans granted to the private sector and economic growth, although the relationship disappeared during the hyperinflationary period, was confirmed by Cojocaru et al (2011) on a sample of the former socialist countries of Central and East Europe and the Community of Independent States.…”

Section: Literature Reviewmentioning

confidence: 99%

The relationship between banks' credit activity and economic growth: An empirical research for the Republic of Serbia

Grbić¹,

Luković²

2020

Industrija

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The subject matter of the research study conducted in this paper is the interactive relationship between banks' credit activity and economic growth. In connection with that, the paper is aimed at examining the existence and direction of the cause and effect relationship between the credit activity of the banking sector and the overall economic activity in the Republic of Serbia. The quarterly data related to the period from 2003 to 2019 were collected for the purposes of the research. The share of the loans granted to enterprises in the GDP and the share of the loans granted to households in the GDP are used as the indicators of the credit activity in the study, whereas the real GDP growth rate is determined as the indicator of economic growth. Given the fact that the observed time series are of the different order of integration, the analysis is conducted within the VAR model by applying the Toda-Yamamoto procedure of the Granger causality test. The results of the research show a significant unidirectional causal relationship according to Granger, which starts from the direction of banks' credit activity towards economic growth. The results of the conducted research study can be useful to the makers of the economic policy and the creators of a strategy for the development of the national economy.

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Banking sector performance and economic growth: evidence from Southeast European countries

Cited by 30 publications

References 43 publications

Research evolution in banking performance: a bibliometric analysis

Research evolution in banking performance: a bibliometric analysis

Money creation process, banking performance and economic policy uncertainty: evidence from Tunisian listed banks

The relationship between banks' credit activity and economic growth: An empirical research for the Republic of Serbia

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