University of Surrey

Test tubes in the lab Research in the ATI Dance Research

Regulations, competition and bank risk-taking in transition countries

Agoraki, MEK, Delis, MD and Pasiouras, F (2011) Regulations, competition and bank risk-taking in transition countries Journal of Financial Stability, 7 (1). pp. 38-48.

Full text not available from this repository.

Abstract

This study investigates whether regulations have an independent effect on bank risk-taking or whether their effect is channeled through the market power possessed by banks. Given a well-established set of theoretical priors, the regulations considered are capital requirements, restrictions on bank activities and official supervisory power. We use data from the Central and Eastern European banking sectors over the period 1998-2005. The empirical results suggest that banks with market power tend to take on lower credit risk and have a lower probability of default. Capital requirements reduce risk in general, but for banks with market power this effect significantly weakens or can even be reversed. Higher activity restrictions in combination with more market power reduce both credit risk and the risk of default, while official supervisory power has only a direct impact on bank risk. © 2009 Elsevier B.V.

Item Type: Article
Authors :
NameEmailORCID
Agoraki, MEKUNSPECIFIEDUNSPECIFIED
Delis, MDUNSPECIFIEDUNSPECIFIED
Pasiouras, Ff.pasiouras@surrey.ac.ukUNSPECIFIED
Date : 1 January 2011
Identification Number : 10.1016/j.jfs.2009.08.002
Depositing User : Symplectic Elements
Date Deposited : 16 May 2017 15:15
Last Modified : 16 May 2017 15:15
URI: http://epubs.surrey.ac.uk/id/eprint/818306

Actions (login required)

View Item View Item

Downloads

Downloads per month over past year


Information about this web site

© The University of Surrey, Guildford, Surrey, GU2 7XH, United Kingdom.
+44 (0)1483 300800