Performance and strategies of banks in transition economies

Autori

• Rainer Haselmann

Parametri

• Libri di testo
• Libri di testo universitari

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This book explores the performance and strategies of banks in 12 Central and Eastern European economies during their transition phase. It establishes a comprehensive database containing financial statements and ownership details, which facilitates a stochastic frontier analysis to measure banking efficiency. Findings reveal that foreign banks generally exhibit greater cost efficiency than domestic banks, with state-owned banks outperforming privately owned ones. The second part emphasizes the significance of robust creditor rights in enhancing banking performance. Legislative improvements enable banks to secure interests in lending contracts, leading to better lending conditions post-reform. Empirical tests using a Difference-in-Differences (DID) methodology confirm that enhancements in collateral and bankruptcy laws positively impact banking efficiency. Additionally, the book investigates the causes and consequences of foreign market penetration, suggesting that the substantial market share of foreign banks is linked to their technological advantages over domestic rivals. Analyzing loan supply factors reveals only minor differences between domestic and foreign banks, with no clear relationship between the macroeconomic conditions of the foreign banks' countries of origin and their lending activities. These findings support the notion that foreign banks enter CEE markets to tap into new opportunities.

Lingua: Inglese

Pubblicato: 2006