Semantic Scholar Open Access 2011 734 sitasi

Efficiency and Risk in European Banking

Franco Fiordelisi David Marqués-Ibáñez P. Molyneux

Lihat Sumber DOI

Abstrak

We assess the inter-temporal relationship between bank efficiency, capital and risk in a sample of European commercial banks employing several definitions of efficiency, risk and capital and using the Granger-causality methodology in a panel data framework. Our results suggest that lower bank efficiency with respect to costs and revenues Granger-causes higher bank risk and that increases in bank capital precede cost efficiency improvements. We also find that more efficient banks eventually become better capitalized and that higher capital levels tend to have a positive effect on efficiency levels. These results are generally confirmed by a series of robustness tests. The results have potentially important implications for bank prudential supervision and underline the importance of attaining long-term efficiency gains to support financial stability objectives.

Topik & Kata Kunci

Chemistry Economics

Penulis (3)

Franco Fiordelisi

David Marqués-Ibáñez

P. Molyneux

Format Sitasi

APA MLA BibTeX

Fiordelisi, F., Marqués-Ibáñez, D., Molyneux, P. (2011). Efficiency and Risk in European Banking. https://doi.org/10.1016/J.JBANKFIN.2010.10.005

Akses Cepat

Lihat di Sumber doi.org/10.1016/J.JBANKFIN.2010.10.005

Informasi Jurnal

Tahun Terbit: 2011
Bahasa: en
Total Sitasi: 734×
Sumber Database: Semantic Scholar
DOI: 10.1016/J.JBANKFIN.2010.10.005
Akses: Open Access ✓