Loan growth, ownership, and regulation in the European Banking Sector: Old versus new banking landscape

Agoraki, Maria‐Eleni K.; Κουρέτας, Γεώργιος Π.

doi:10.1016/j.intfin.2021.101450

Cited by 8 publications

(8 citation statements)

References 76 publications

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“…Insignificant dispersions in the ownership structure between the large and small owners assure credit providers that their risk is well spread. The finding concurs with Agoraki and Kouretas (2021), who establish that the firm's ownership structure influences bank lending behavior. Be that as it may, specific reasons explain the inverse relationship between such ownership concentration and the value of the credit facility advanced.…”

Section: Discussionsupporting

confidence: 89%

Financial Institution Type and Firm-Related Attributes as Determinants of Loan Amounts

Mallinguh¹,

Zéman²

2022

JRFM

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Access to formal credit remains critical for business operations, particularly for firms unable to generate sufficient funds internally. Using the World Bank’s Enterprise Survey dataset, 2018, we analyzed 230 Kenyan firms that applied for loans. These loans are sourced from banks (private, commercial, or state-owned) or non-banking financial institutions. Specifically, the paper explores the effect of financial institution type and firm-related characteristics on loan amounts advanced. The results show that the preferred credit provider matters, with the sensitivity level varying among the three institutional types. Additionally, the collateralization value, the owner’s equity proportion of fixed assets, and any existing credit facility correlate positively with the outcome variable. There is an inverse relationship between the largest shareholder’s ownership and the loan amount. The study uses the new product (service) launches to measure innovation. The findings suggest that firms in the innovation process access higher loan amounts than their non-innovative peers. Be that as it may, the difference in amount effect size between the two groups is small based on Cohen’s d rule. The paper highlights the theoretical and practical implications of these findings.

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Section: Discussionsupporting

confidence: 89%

Financial Institution Type and Firm-Related Attributes as Determinants of Loan Amounts

Mallinguh¹,

Zéman²

2022

JRFM

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“…The CEE region includes countries that went through restructuring of the banking system at the end of the XX century. Depth and stability of financial system, structure of financial investments, technical efficiency of the banking sector, regulatory measures, loan growth, internationalization of the banking sector, ability of banks to overcome crises, and soundness of banks are at the core of studies (e.g., European Investment Bank, 2020; Kočenda & Iwasaki, 2020;Vunjak et al, 2020;Horvatova, 2018;Gallizo et al, 2017;Lapteacru, 2017;Iwanicz-Drozdowska & Witkowski, 2016;Jočiene, 2015;Nitoi & Spulbar, 2015;Li & Ferreira, 2011;ECFIN Economic Brief, 2010;EC Directorate-General for Economic and Financial Affair, 2010;Brada et al, 2021;Agoraki & Kouretas, 2021). The characteristics of the banking sector in the CEE region are useful for understanding research results.…”

Section: Discussionmentioning

confidence: 99%

“…Scientists indicate that the CEE region has highly concentrated banking market and less-developed financial market (Bergantino & Capozza, 2018) with low convergence level (Niţoi & Pochea, 2016). Overall, regulatory and supervision measures (for example, capital requirements, official supervision, market discipline) significantly affect performance of the banking sector according to the research of Agoraki and Kouretas (2021). In the context of the CEE region, scientists devote attention to the ownership structure by indicating effects on lending offer (Agoraki and Kouretas 2021) and determining effects depending on type of crises (Allen et al, 2017).…”

Section: Discussionmentioning

confidence: 99%

“…However, scientists continue to evaluate, which institutional factors are more relevant for the soundness of banks. Literature analysis allows concluding that the level of the soundness of banks is affected by, for example, economic freedom, political stability, entrepreneurial environment and culture, development of financial market, societal well-being, technological expansion, supervisory regulation, institutional reforms, corporate governance, and even climate change (e.g., Chan et al, 2015;Berglund & Makinen, 2019;Jin et al, 2017;Bergantino & Capozza, 2018;Fang et al, 2014;Kočenda & Iwasaki, 2020;Lamperti et al, 2021;Agoraki & Kouretas, 2021). Although, discussions on significance of institutional factors still are ongoing and even differentiate depending on the cases under research.…”

Section: Literaturementioning

confidence: 99%

“…Scientists focus on both external and internal institutional factors. For example, Agoraki and Kouretas (2021) highlight the role of regulatory and supervision measures for banks' core activities, i.e. loans.…”

Section: Literaturementioning

confidence: 99%

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Linking Institutional Factors with the Financial Soundness of Banks. Evidence from the CEE Region

2023

EJSD

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Sustainable financial sector needs the sound banking system. The soundness of the banking system is the subject for effects from institutional factors representing the areas of economy, society, public sector, legislation, technologies, and climate change. Although, studies rarely pay attention to the complex approach, where all areas are analysed simultaneously within the study. Design of the present study aims to analyse institutional factors of interdisciplinary nature, which demonstrate potential significance for the sound banking system. The authors focus on the cases that differ by the level of the soundness of banks. The approach provides the novelty of research. Method. During the research, the authors identify and characterise linkages between the factors of institutional environment and the soundness of banks. For the aim, monographic method and correlation analysis are applied. Analysis. The analysis is organised by using two cases that differ by the level of the soundness of banks -the region of Central and Eastern Europe and ten countries with the highest level of the soundness of banks in the world according to the data on Global Competitiveness Report. Results. For the cases that differ by the level of the soundness of banks, the research results demonstrate similarity by the linkages with indicators representing depth of financial system and corporate governance. Differences between the cases appear by the linkages with indicators representing public sector performance and stability of financial system. Conclusions. For the case with lower level of the soundness of banks, overall trends that are necessary for functioning of the sound banking system are observed. Although, several indicators that by their sense are significant for the sound banking system demonstrate negative direction or weak relationship with the soundness of banks what has to be improved in the future and appear as a result of the peculiarities of the banking sector in the region.

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Asymmetries in banking conduct: A Cournot - Bertrand model

Dalla

2023

Economics Letters

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Loan growth, ownership, and regulation in the European Banking Sector: Old versus new banking landscape

Cited by 8 publications

References 76 publications

Financial Institution Type and Firm-Related Attributes as Determinants of Loan Amounts

Financial Institution Type and Firm-Related Attributes as Determinants of Loan Amounts

Linking Institutional Factors with the Financial Soundness of Banks. Evidence from the CEE Region

Asymmetries in banking conduct: A Cournot - Bertrand model

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