Market reforms, legal changes and bank risk-taking : evidence from transition economies

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dc.contributor Bank of Finland
dc.contributor.author Fang, Yiwei
dc.contributor.author Hasan, Iftekhar
dc.contributor.author Marton, Katherin
dc.date.accessioned 2014-09-22T07:58:34Z
dc.date.available 2014-09-22T07:58:34Z
dc.date.issued 2011
dc.identifier.isbn 978-952-462-669-9
dc.identifier.issn 1456-6184
dc.identifier.uri https://helda.helsinki.fi/bof/handle/123456789/7684
dc.description.abstract The policy changes and structural reforms in transition economies over the past two decades have created exogenous variations in institutional development, which offers us an ideal natural experiment to analyse the causal effects of institutions on bank risk-taking behaviour. This paper examines a wide array of institutional reforms in respect of law and legal institutions, banking liberalization, and enterprise restructuring in privatization and corporate governance. Using a difference-in-difference approach, we find that banks financial stability has increased substantially subsequent to the institutional reforms. Further analysis suggests that the enhancement of financial stability mostly comes from the reduction of asset risk. Moreover, the effects of institutional reforms on bank risk are more pronounced for domestic banks than foreign banks. From the policy consideration, our study sheds light on the risk implications of different institutional reforms that have been characterizing transition countries.
dc.format.extent 44 s.
dc.language.iso eng
dc.rights https://helda.helsinki.fi/bof/copyright
dc.subject siirtymätaloudet
dc.subject pankkitoiminta
dc.subject riskit
dc.subject uudistukset
dc.subject lainsäädäntö
dc.subject mittaus
dc.subject oikeus
dc.subject sääntely
dc.subject ulkomaiset pankit
dc.subject yritykset
dc.subject SP
dc.subject RP
dc.title Market reforms, legal changes and bank risk-taking : evidence from transition economies
dc.type Sarjajulkaisu
dc.identifier.urn URN:NBN:fi:bof-20140807451
dc.series.name Bank of Finland Research Discussion Papers
dc.series.year 2011
dc.series.number 7/2011
dc.series.sortingnumber 0007
dc.date.publication 1.3.2011

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