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Macroprudential regulations and bank profit efficiency: international evidence

  • Chrysovalantis Gaganis
  • , Emilios Galariotis
  • , Fotios Pasiouras*
  • , Christos Staikouras
  • *Corresponding author for this work

Research output: Contribution to journalArticlepeer-review

21 Scopus citations

Abstract

This study examines the impact of macroprudential regulations on bank profit efficiency. The latter is being estimated with a production frontier function using a cross-country dataset of more than 3000 banks from over 130 countries during 2013–2018. The results show that macroprudential regulatory policies diminish bank efficiency. This finding applies to both borrower-targeted and financial institutions-targeted policies, and it is robust to the inclusion of controls for microprudential regulations, financial consumer protection policies, and other county-level characteristics in the regressions.

Original languageEnglish
Pages (from-to)136-160
Number of pages25
JournalJournal of Regulatory Economics
Volume59
Issue number2
DOIs
StatePublished - Apr 2021

Bibliographical note

Publisher Copyright:
© 2021, The Author(s), under exclusive licence to Springer Science+Business Media, LLC part of Springer Nature.

UN SDGs

This output contributes to the following UN Sustainable Development Goals (SDGs)

  1. SDG 10 - Reduced Inequalities
    SDG 10 Reduced Inequalities

Keywords

  • Bank efficiency
  • Macroprudential
  • Regulations

ASJC Scopus subject areas

  • Economics and Econometrics

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