Arbeitspapier
Bank regulations and income inequality: Empirical evidence
This paper provides cross-country evidence that variations in bank regulatory policies result in differences in income distribution. In particular, the overall liberalization of banking systems decreases the Gini coefficient and the Theil index significantly. However, this effect fades away for countries with low levels of economic and institutional development and for market-based economies. Among the different liberalization policies, the most significant negative effect on inequality is that of credit controls, which also seem to have a lasting effect on the Gini coefficient. Banking supervision and the abolition of interest rate controls also have a negative yet short-run impact on income inequality. A notable finding is that liberalization of securities markets increases income inequality substantially and over a long time span, suggesting that securitization widens the distribution of income. We contend that these findings have new implications for the effects of bank regulations, besides those related to their impact on financial stability.
- ISBN
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978-952-462-805-1
- Language
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Englisch
- Bibliographic citation
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Series: Bank of Finland Research Discussion Papers ; No. 18/2012
- Classification
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Wirtschaft
Financial Institutions and Services: Government Policy and Regulation
Economic Development: Human Resources; Human Development; Income Distribution; Migration
Economic Development: Financial Markets; Saving and Capital Investment; Corporate Finance and Governance
- Subject
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Bank regulations
Income inequality
Cross-country panel data
Instrumental variables
Panel VAR
- Event
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Geistige Schöpfung
- (who)
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Delis, Manthos D.
Hasan, Iftekhar
Kazakis, Pantelis
- Event
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Veröffentlichung
- (who)
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Bank of Finland
- (where)
-
Helsinki
- (when)
-
2012
- Handle
- Last update
-
10.03.2025, 11:45 AM CET
Data provider
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
Object type
- Arbeitspapier
Associated
- Delis, Manthos D.
- Hasan, Iftekhar
- Kazakis, Pantelis
- Bank of Finland
Time of origin
- 2012
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