Arbeitspapier
Regional growth and finance in Europe: is there a quality effect of bank efficiency?
In this study, we test whether regional growth in 11 European countries depends on financial development and suggest the use of cost- and profit-efficiency estimates as quality measures for financial institutions. Contrary to the usual quantitative proxies for financial development, the quality of financial institutions is measured in this study as the relative ability of banks to intermediate funds. An improvement in bank efficiency spurs five times more regional growth than does an identical increase in credit. More credit provided by efficient banks exerts an independent growth effect in addition to the direct quantity and quality channel effects.
- ISBN
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978-952-462-509-8
- Language
-
Englisch
- Bibliographic citation
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Series: Bank of Finland Research Discussion Papers ; No. 13/2009
- Classification
-
Wirtschaft
Banks; Depository Institutions; Micro Finance Institutions; Mortgages
Economic Development: Financial Markets; Saving and Capital Investment; Corporate Finance and Governance
Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence
Economywide Country Studies: Europe
- Subject
-
bank performance
regional growth
bank efficiency
Europe
- Event
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Geistige Schöpfung
- (who)
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Hasan, Iftekhar
Koetter, Michael
Wedow, Michael
- Event
-
Veröffentlichung
- (who)
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Bank of Finland
- (where)
-
Helsinki
- (when)
-
2009
- Handle
- Last update
-
10.03.2025, 11:43 AM CET
Data provider
This object is provided by:
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the 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
- Hasan, Iftekhar
- Koetter, Michael
- Wedow, Michael
- Bank of Finland
Time of origin
- 2009
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