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Bank regulation and efficiency: Evidence from transition countries

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  • Djalilov, Khurshid
  • Piesse, Jenifer

Abstract

Given the nascent nature of banking sectors in transition countries and their unique institutional settings, this paper documents the effects of regulation on the efficiency of banks using system GMM and dynamic panel quantile regressions for 21 transition countries for the period 2002–2014. Within the system GMM estimation the paper finds bank activity restrictions to be the only regulation improving banking efficiency in these countries. However, the dynamic panel quantile results show that the regulation has different effects at different quantiles. This study provides important policy implications related to banking regulation in transition economies.

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  • Djalilov, Khurshid & Piesse, Jenifer, 2019. "Bank regulation and efficiency: Evidence from transition countries," International Review of Economics & Finance, Elsevier, vol. 64(C), pages 308-322.
    • Handle: RePEc:eee:reveco:v:64:y:2019:i:c:p:308-322
    DOI: 10.1016/j.iref.2019.07.003
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    More about this item

    Keywords

    Banking; Bank regulation; Transition economies;
    All these keywords.

    JEL classification:

    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • G28 - Financial Economics - - Financial Institutions and Services - - - Government Policy and Regulation
    • P30 - Political Economy and Comparative Economic Systems - - Socialist Institutions and Their Transitions - - - General

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