The impact of bank ownership on lending behavior: Evidence from the 2008–2009 financial crisis

Haldarov, Zamon; Asteriou, Dimitrios; Trachanas, Emmanouil

doi:10.1002/ijfe.2256

Cited by 3 publications

(2 citation statements)

References 61 publications

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“…In this case, if the government does not protect local investors, the monopoly of foreign ownership of banking shares in Indonesia will continue to increase. [13] Even though the beneficial value of monopoly activities can contribute more to the stability of the national economic system and boost development in the financial sector, the value of distributive justice, which should be the main principle of this policy, needs to be addressed. Suppose the government needs to review this policy.…”

Section: Findings and Discussionmentioning

confidence: 99%

The Regulation of Foreign Ownership of National Banks in Indonesia and Its Impact on National Development

Bidari,

Suwadi,

Muryanto

2024

Advances in Social Science, Education and Humanities Research

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International agreements make Indonesia liberalize the financial sector. As a result, foreign ownership of national banks in Indonesia has dominated the shares of banks that have gone public. Even though market mechanisms should be the key to healthy competition in liberalizing national bank ownership in Indonesia, the readiness of local investors to compete with foreign investors still needs to be improved. This research aims to show the impact of the foreign monopoly on national banks' ownership to achieve long-term national development targets. This research uses normative juridical research methods with a conceptual and statutory approach. As an analytical tool, Richard Posner's antitrust theory will show the negative impact of the national banks' liberalization in Indonesia. This policy will impact the stability and future development of the national financial sector. The result shows that the liberalization policy at least brought about (1) domination of foreign ownership, (2) lack of ability of domestic investors to compete with foreign investors, (3) there needs to be an evaluation of the motivation of foreign investors in Indonesia, (4) dominance in determining the direction of national bank policy is in the hands of foreign investors, (5) there need to be adjustments to standards that can ensure that investor policies are in line with the direction of Indonesian national policy. Thus, this research can provide a new perspective in looking at the direction of economic sector liberalization policies that are fair to all Indonesian people.

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Section: Findings and Discussionmentioning

confidence: 99%

The Regulation of Foreign Ownership of National Banks in Indonesia and Its Impact on National Development

Bidari,

Suwadi,

Muryanto

2024

Advances in Social Science, Education and Humanities Research

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“…Recently, Fukuyama and Tan (2020) stated that management and reduction of risk levels will not only be good for stability, but may also enhance efficiency because the banking sector plays a major part in the country's economy, healthy progress, and sustainable development. Haldarov, Asteriou, and Trachanas (2020) have expressed that the 2008 financial crisis resulted in the severe instability of banking systems. Additionally, Le, Ševi c, Tzeremes, and Ngo (2020) reported that several problems and challenges emerged in the banking sector's stability and efficiency components in the wake of the financial crisis.…”

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confidence: 99%

Impact of intellectual capital efficiency on financial stability in banks: Insights from an emerging economy

et al. 2021

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The paper aims to address the long-term and short-term effects of intellectual capital efficiency (ICE) on Pakistan's bank stability together with the banking system's inherent factors. The ICE is measured through the VAIC™ model and consists of human, rational, and structural capitals. The auto-regressive distributed lag estimation technique results underwrite that an increase in ICE leads to better bank stability and endorses the resource-based theory. Apart from that, findings show the long-term role of ICE in bank stability, although statistics depict no short-term role in this regard. The efficiency ratios, risk-based capital, leverage, and bank size shows a positive impact in the short run. In the long run, the risk-based capital and leverage show a decisively positive influence, while the bank size and efficiency ratio show a negative effect. Findings can be used to increase intangible investments to build a sustainable competitive advantage based on the resourcebased approach. The upcoming review is expected to consider the Fintech effect. K E Y W O R D Sauto-regressive distributed lag (ARDL), banking stability, banks' efficiency, risk practices, value added intellectual capital (VAIC)

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Does democracy matter in banking performance? Exploring the linkage between democracy, economic freedom and banking performance in the European Union member states

Socol,

Iuga

2023

Int. J Fin Econ

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Literature on the effects of socio‐political factors and the quality of political‐economic institutions on banking performance is scarce and mixed. To contribute to this literature, this study analyzes whether democracy and economic freedom affect the banking sector in European Union member countries. We provide empirical evidence of the influence of democracy and economic freedom on banking performance using a sample of 27 countries from 2001 to 2020, and accounting‐based return on assets (ROA) and return on equity (ROE) as performance measures. A dynamic model (system GMM) was used to address issues such as heteroscedasticity, serial correlation, and endogeneity. These findings indicate that democracy is positively associated with banking performance, whereas economic freedom negatively affects it in the sample countries. Additionally, this study adds to the growing literature on the relationship between control variables (macroeconomic determinants, bank‐specific factors, or a country's legislative regime) and banking performance. This study is practically valuable for managers, investors, stakeholders, policymakers, and academicians.

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The impact of bank ownership on lending behavior: Evidence from the 2008–2009 financial crisis

Cited by 3 publications

References 61 publications

The Regulation of Foreign Ownership of National Banks in Indonesia and Its Impact on National Development

The Regulation of Foreign Ownership of National Banks in Indonesia and Its Impact on National Development

Impact of intellectual capital efficiency on financial stability in banks: Insights from an emerging economy

Does democracy matter in banking performance? Exploring the linkage between democracy, economic freedom and banking performance in the European Union member states

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