scholarly journals A Cross-Country Nonparametric Analysis of Bahrain's Banking System

2005 ◽  
Author(s):  
David A. Grigorian ◽  
Vlad Manole
2013 ◽  
Vol 1 (1) ◽  
pp. 23-38 ◽  
Author(s):  
David Grigorian ◽  
Vlad Manole

Abstract Bahrains financial sector development strategy succeeded in building a leading regional banking center, which has become one of the main engines of growth and sources of employment. Based on bank level productivity estimates obtained using non-parametric estimation, the paper concludes that Bahrain continues to occupy a front-runner position among sample GCC countries. Results also reveal that: (i) banks in Bahrain still lag behind their Singaporean counterparts (included in the study as a benchmark), and (ii) there is strong competition from other countries in the region. The results appear to be robust with respect to changes in the sample size and model specifications.


2017 ◽  
Vol 17 (175) ◽  
Author(s):  
Anke Weber

This paper examines the case for efficiency-driven banking sector consolidation in Italy, evaluates its potential effects on profitability, and discusses policy options to facilitate a consolidation process that is as effective as possible. A bottom-up analysis of 386 Italian banks suggests that while profitability is expected to improve as the economy gradually recovers, operational efficiency gains are nonetheless needed to restore large parts of the banking system to healthy profitability. Banking system consolidation can play a role in facilitating such efficiency gains, but its effectiveness is likely to be most as part of a comprehensive strategy that includes complementary reforms to clean up bank balance sheets. Cross-country experience indicates that efficiency gains are more likely to follow consolidations where careful viability analyses are conducted of the synergies and operational improvements that can be achieved.


2018 ◽  
Vol 108 ◽  
pp. 542-546 ◽  
Author(s):  
Gita Gopinath ◽  
Jeremy C. Stein

We develop a model that shows how the currency denomination of a country's imports influences the funding structure of its banking system, and in turn, the currency composition of its central bank's reserve holdings. The link between the dollar's role in bank funding and its role as a central bank reserve currency is stronger when the country's fiscal capacity is limited, and when exchange rates are volatile. In the data, there is a pronounced cross-country relationship between the fraction of imports that are dollar invoiced, and the fraction of central-bank foreign-exchange reserves that are held in dollars.


2020 ◽  
Vol 12 (3) ◽  
pp. 303-334
Author(s):  
Anjali Prashad

Presence of a heterogeneous banking system across countries provides opportunities for cross-border banks to indulge in activities of regulatory arbitrage. This article attempts to investigate whether regulatory arbitrage induces the presence of foreign banks in India. Using relevant country-level data on various aspects of banking regulations, we conduct a series of panel regressions to examine the effect of cross-country gap in banking regulations on foreign banks’ presence in India. We find regulatory arbitrage as significantly determining foreign banks’ presence in India, after controlling for other factors (income level of home country, bilateral economic relationship, colonial and linguistic commonality, and geographic proximity).


2013 ◽  
Vol 57 (1-2) ◽  
Author(s):  
Stefan Gärtner ◽  
Franz Flögel

Decentralized versus centralized banking systems? Geographic market orientation and the location of decision-making as characteristics for a classification of banking systems. In the light of global financial integration many authors expect a homogenization of financial systems and thus the well-established classification in bank and capital market-based systems is questioned. We conceptualised an alternative classification in decentralized and centralized banking and apply this classification to the German banking system. Banking groups differ clearly in terms of their spatial distribution of employees, which we use as an approximate indicator for geographic market orientation. It was also observed that decentralized banks increased their share in the credit market at the expense of centralized banks and granted the majority of corporate loans. Compared internationally the German banking system is presumably very decentralized, however more research is needed to assess the state and influence of banking systems’ spatial organisation on a cross country base.


2021 ◽  
Vol 14 (8) ◽  
pp. 351
Author(s):  
Stefano Zedda ◽  
Antonella Spinace-Casale

The recent financial crisis proved that financial contagion could spread among countries resulting in disruptive effects. In this paper, by modeling and simulating banking system behavior and linkages across countries, we assess, based on data from the BIS and IMF, the possible outcome of domestic crises and how contagion spreads over countries. Results allow detailing the role of a “lighter” or of a “fueler” of financial crises for each country and assessing how each country can affect each other country by contagion, signaling the importance of financial interdependence between some neighboring countries, and detailing which counterpart country would be affected by the ring-fencing of each considered country’s banking system. The method also allows for what-if analyses to optimize the risk exposures, and to plan an emergency strategy in case of alarms coming from specific countries.


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