Financial Liberalization, Market Structure and Credit Penetration

Balmaceda, Felipe; Fischer, Ronald; Ramirez, Felipe

doi:10.2139/ssrn.2277242

Cited by 7 publications

(6 citation statements)

References 25 publications

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“…With regards to private credit which is the measure of financial development is negatively related to the financial crisis. This result is consistent with the findings of Abiad et al (2010), Balmaceda, Fischer and Ramirez (2013) and Bezemer et al (2015) who concluded that financial development increases financial openness which creates competitiveness, slowing down financial instability. It is essential to note that financial reform index including the Financial Reforms (-4)*DT capturing the dummy which captures the global financial crisis in all the three equations has a positive relationship with impaired loans.…”

Section: Chi-supporting

confidence: 92%

Financial Sector Liberalization and Financial Instability: Case of Selected Southern African Development Community Member Countries

Cele

2018

JEBS

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The importance of financial liberalization is well documented in the literature. However, there has been an emergency of studies, which indicate that this can be another channel through which financial instability is generated in the domestic economy. Utilising data from four SADC countries, the empirical findings show that financial reforms are positively related to financial instability in almost all the specifications. The empirical results further revealed that financial instability intensifies in the face of a financial crisis. The result suggests that financial liberalization can therefore be another source of financial instability in the region. The empirical results imply that though policymakers should liberalise the financial system, policies aimed at maintaining financial stability should also be promoted.

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Section: Chi-supporting

confidence: 92%

Financial Sector Liberalization and Financial Instability: Case of Selected Southern African Development Community Member Countries

Cele

2018

JEBS

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“…In developing countries, current financial cooperatives face competition from national commercial banks, but also from multinational financial institutions. The last three decades of financial liberalization have increased the presence of foreign banks in developing countries (Balmaceda et al ). Furthermore, in some developed countries, financial cooperatives also benefited from favorable legislations, as was the case for German financial cooperatives (Guinnane ).…”

Section: Introductionmentioning

confidence: 99%

Are Financial Cooperatives Crowded out by Commercial Banks in the Process of Financial Sector Development?

Périlleux¹,

Vanroose²,

D’Espallier³

2016

Kyklos

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Summary This paper investigates whether financial cooperatives are crowded out by commercial banks in the process of financial sector development. We use a self‐constructed database based on World Council of Credit Unions data for the years 1990‐2011 of cooperatives in 55 developing countries. Our empirical results are threefold. First, financial cooperatives tend to reach more members in countries where the commercial banking sector is weak. This validates their role as a banking market failure solution. Second, in the process of commercial bank expansion, financial cooperatives run the risk of being crowded out. Third, the relationship is actually complex, since financial cooperatives seem to benefit from some kind of bank presence, especially as far as savings mobilization is concerned.

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“…Other studies have analyzed market structure of trading assets, focusing on the impacts of market structure on prices, profits, and firm policies (e.g., (Eső et al, 2010;Wang and Zheng, 2012;Erto, 2013;Ferrer, 2013;Balmaceda et al, 2014;Dionne and Santugini, 2014)). Guriev and Kvasov (2009) develop a model for imperfect competition in financial markets with an endogenous capital structure for analyzing firms' financing decisions.…”

Section: Introductionmentioning

confidence: 99%

A Supply-Lock Competitive Market for Investable Products

Wang

2016

Asian Development Policy Review

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We propose a new market structure, a supply-lock competition (SLC), for analyzing transactions of investable goods. This study explains and analyzes how the SLC is applicable for transactions of stock, art, real estate, currency, and scarce goods. We suggest that the formation and fluctuation of the market price for these investable assets are not only related to their intrinsic values or investors' behavior, but are also derived from supply restriction. A mechanism of the SLC market structure benefits market efficiency but also continues volatility of asset prices in secondary markets as well. We demonstrate that a demand orientation dominates the valuation of investable assets, resulting in a divergence of market price and intrinsic value.

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Financial Liberalization, Market Structure and Credit Penetration

Cited by 7 publications

References 25 publications

Financial Sector Liberalization and Financial Instability: Case of Selected Southern African Development Community Member Countries

Financial Sector Liberalization and Financial Instability: Case of Selected Southern African Development Community Member Countries

Are Financial Cooperatives Crowded out by Commercial Banks in the Process of Financial Sector Development?

A Supply-Lock Competitive Market for Investable Products

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