Showing papers by "Cristi Spulbar published in 2014"
TL;DR: In this paper, a modified version of a model used in Corvoisier and Gropp (2002) and de Guevara et al. (2005) was used to argue that banks' soundness, the structural characteristics and efficiency of the banking sector and the development of the capital markets are forming a financial nexus.
Abstract: Based on a modified version of a model used in Corvoisier and Gropp (2002) and de Guevara et al (2005), we argue that banks’ soundness, the structural characteristics and efficiency of the banking sector and the development of the capital markets are forming a financial nexus. For a data set of 63 developed and developing countries, we find evidences that efficiency significantly modulates the linkages between concentration and soundness. We also find that capital markets’ development is supporting a stable evolution in banking sector. For the relationship between capital markets and soundness, our findings appear to be robust for various measures of the considered variables as well as for different estimation techniques. In what concerns the impact of the concentration upon soundness, the results obtained display a certain sensitivity regarding the way concentration is measured.
24 citations
TL;DR: In this article, a modified version of the model used in Corvoisier and Gropp (2002) and De Guevara et al. (2005) was used to argue that banks' soundness, the structural characteristics and efficiency of the banking sector along with the development of the capital markets constitute a financial nexus.
19 citations
TL;DR: In this paper, the authors adopt Wang's (2002) heteroscedastic stochastic frontier model, which allows them to investigate bank cost efficiency and to measure the marginal effects of some variables on both the level and the variability of inefficiency.
Abstract: In this study, we adopt Wang’s (2002) heteroscedastic stochastic frontier model, which allows us to investigate bank cost efficiency and to measure the marginal effects of some variables on both the level and the variability of inefficiency. In recent years, the financial crisis has significantly affected the banking systems of the transition countries. Hence, the efficiency is of major importance for the stability of the banks. Regarding the determinants of efficiency, we find evidence that banks that follow a more cautious strategy, characterized by lower risk appetite and average expectations on profitability, have higher cost efficiency. We also find that traditional deposit-taking and loan-making still remain the most efficient activity of the banks. Additionally, the results showed that a higher Gross Domestic Product growth rate implies an increase in the inefficiency level, indicating an unsustainable bank management behaviour, which in periods of economic growth adopts policies that can generate ...
17 citations
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TL;DR: In this article, the authors adopt Wang's (2002) heteroscedastic stochastic frontier model, which allows them to investigate bank cost efficiency and to measure the marginal effects of some variables on both the level and the variability of inefficiency.
Abstract: In this study we adopt Wang’s (2002) heteroscedastic stochastic frontier model, which allows us to investigate bank cost efficiency and to measure the marginal effects of some variables on both the level and the variability of inefficiency. In recent years, the financial crisis has significantly affected the banking systems of the transition countries. Hence, the efficiency is of major importance for the stability of the banks. Regarding the determinants of efficiency, we find evidence that banks that follow a more cautious strategy, characterized by lower risk appetite and average expectations on profitability, have higher cost efficiency. We also find that traditional deposit-taking and loan-making still remain the most efficient activity of the banks. Additionally, the results showed that a higher Gross Domestic Product growth rate implies an increase in the inefficiency level, indicating an unsustainable bank management behaviour, which in periods of economic growth adopts policies that can generate inefficiency in order to gain market share and to obtain higher bonuses. Country cost efficiency results show significant differences. The banking systems in transition countries in South Eastern Asia appear to have a higher cost efficiency level. Also, the effects of the financial crisis were less significant in this region.