Bank Concentration and Fragility

Profitability is an important factor to show this articledoeswhat is the role of the intermediary bank to collect your savings and allocation of loans. Given the importance of profitability indicators in this study, the factors affecting the profitability of commercial banks in Iranare analyzedwith emphasis on the degree of centralization and bank deposits. Dependent variable is indicators of profitability (ROE, ROA) and bank deposits, bank size, bank capital, focus on liquidity and banking requirements are independent variables. Correlation analysis and OLS regression are used and the research period is 1381 to 1390 that the country's territory where bank branches.Our results indicate that the effect of bank size on profitability is positive and the increase in bank size on profitability is increased. Impact on the profitability of bank deposits is positive, ie increasing the profitability of bank deposits increased. Finally, the impact of bank concentration on profitability is positive. Increasing the bank's focus profitability increases. Moreover, the results adversely affect the liquidity of the index is profit.

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Corporate debt maturity and economic development

International Journal of Managerial Finance ◽

10.1108/ijmf-04-2018-0115 ◽

2019 ◽

Vol 15 (5) ◽

pp. 669-687 ◽

Cited By ~ 1

Author(s):

Celia Álvarez-Botas ◽

Víctor M. González-Méndez

Keyword(s):

Developing Countries ◽

Economic Development ◽

Financial Crisis ◽

Firm Size ◽

Debt Maturity ◽

Corporate Debt ◽

Content Type ◽

Country Level ◽

The Relationship ◽

Bank Concentration

Purpose The purpose of this paper is to analyse the effect of economic development on the influence of country-level determinants on corporate debt maturity, bearing in mind firm size and the period of financial crisis. Design/methodology/approach The authors employ panel data estimation with fixed effects to examine the role of economic development in influencing the relationship between country-level determinants on corporate debt maturity. The paper uses a sample of 30,727 listed firms, belonging to 39 countries, over the period 2005–2012. Findings Corporate debt maturity increases with the efficiency of the legal system and bank concentration and decreases with the weight of banks in the economy. However, the importance of these country determinants is greater in developing than in developed countries. The authors also show that firm size in developed and developing countries influences country determinants of corporate debt maturity. Finally, the results reveal that the financial crisis has affected the debt maturity of firms differently in developed and developing countries, with the effect of bank concentration lengthening debt maturity, this effect being more pronounced in developing countries. Practical implications The findings provide useful insights to guide policy decisions providing access to long-term financing, as corporate debt maturity depends on economic development, institutional environment, banking structure and firm size. Originality/value This study incorporates economic development in explaining the relationship between country-level determinants and corporate debt maturity.

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Do Positive Bank Concentration Shocks Impact Economic Growth in South Africa?

Inequality, Output-Inflation Trade-Off and Economic Policy Uncertainty ◽

10.1007/978-3-030-19803-9_17 ◽

2019 ◽

pp. 269-280

Author(s):

Eliphas Ndou ◽

Thabo Mokoena

Keyword(s):

Economic Growth ◽

South Africa ◽

Bank Concentration

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An Empirical Analysis of Factors Affecting Bank Interest Margins: Evidence from the South East European Countries

Comparative Economic Research ◽

10.2478/cer-2018-0013 ◽

2018 ◽

Vol 21 (2) ◽

pp. 81-98

Author(s):

Mehmed Ganić

Keyword(s):

Interest Rate ◽

Empirical Analysis ◽

Banking Sector ◽

Output Growth ◽

The South ◽

Factors Affecting ◽

East European ◽

Interest Margins ◽

See Region ◽

Bank Concentration

This paper provides an empirical analysis of factors affecting Bank Interest Margins in eight countries of the South‑East European (SEE) region between 2000 and 2014. The purpose of this paper is to examine and investigate the main drivers of Bank Interest Rate Margins across selected countries throughout the SEE region. Also, the study explored the relationship between the dependent variable Interest Rate Spread (IRS – as a proxy variable for measuring variation in Bank Interest Rate Margins) and a set of selected banks’ specific variables in SEE by employing panel data estimation methodology. This research is based on aggregate data for the whole banking sector of each country. In line with some expectations, our findings confirm the importance of credit risk, bank concentration operative efficiency, and inflation expectations in determining Bank Interest Rate Margins. Interestingly, in contrast to the majority of recent empirical research, the study found an inverse relationship between the bank concentration variable and Bank Interest Rate Margins as well as between the operational efficiency variable and Bank Interest Rate Margins. Also, the study could not find statistically significant evidence that Bank Interest Rate Margins are determined by output growth, bank profitability (measured by ROA) or liquidity risk.

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