Domestic Banks As Lightning Rods? Home Bias and Information during the Eurozone Crisis

Abstract In this paper, we examine the determinants of bank holdings of domestic sovereign debt with a panel dataset of 295 banks in 35 countries between 2002 and 2013. The findings indicate that the structure of bank ownership (domestic, foreign, or government ownership), the quality of governance, and the level of financial development of the countries in which banks operate all determine the level of home bias. Specifically, we find that domestic banks tend to hold more domestic sovereign debt relative to their foreign counterparts. We also provide evidence that home bias is even stronger when the domestic bank is controlled by its government. Moreover, home bias increases when government bonds are more risky, home governments are less effective, and when banking systems are less financially developed. Overall, we find that banks’ home bias in holding sovereign debt is an international phenomenon that is determined by both bank- and country-specific factors.

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A Study of Possibility of Multi-level Governance's Change and the Impact on offshore Nations after Eurozone Crisis

The Journal of Political Science & Communication ◽

10.15617/psc.2015.06.18.2.151 ◽

2015 ◽

Vol 18 (2) ◽

pp. 151

Author(s):

Jong-Sue Lee

Keyword(s):

Eurozone Crisis ◽

Multi Level ◽

The Impact

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Impact of merger on efficiency and productivity : a case study of commercial banks in Malaysia

Social and Management Research Journal ◽

10.24191/smrj.v5i1.5150 ◽

1970 ◽

Vol 5 (1) ◽

pp. 77

Author(s):

Mahadzir Ismail ◽

Saliza Sulaiman ◽

Hasni Abdul Rahim ◽

Nordiana Nordin

Keyword(s):

Efficiency Score ◽

Malmquist Productivity Index ◽

Productivity Index ◽

Data Envelopment ◽

Master Plan ◽

Before And After ◽

Domestic Banks ◽

The Impact ◽

Efficiency And Productivity

The Financial Master Plan (2001- 2010) aims to enhance the capacity of banking industry so that higher effic iency and productivity can be reaped in the future. This study seeks to determine the impact of merger on the efficiency and productivity ofcommercial banks in Malaysia for the period 1995 until 2005. The study uses a non-parametric approach, nam ely DEA (data envelopment analysis?) to estimate the efficiency scores and to construct the Malmquist productivity index. To enable this estimation, three bank inputs and outputs are used. Amongst the findings are those banks exhibit higher efficiency score after the merger and thefo reign banks are more efficient than the local banks. Productivity of the banks is calculated in both periods, before and after the merger: The results show that, it is the local banks that have improved the most after the merger. The main source of productivity is technical change or innovation. The findings support the existing policy of having larger domestic banks in term of size.

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