Cost-benefit analysis of bank regulation: Does size matter?

Arbeitspapier

This study investigates the trade-off between costs and benefits of bank regulation in Kenya. Using the Stochastic Frontier Analysis (SFA) and Annual data for the period 2003 - 2019, extracted from KBA Financial Database and KNBS macroeconomic data, the study models Industry-level and cluster level relationship between bank regulation and cost inefficiency of banks. The industry-level analysis indicates that stringent capital requirement has a positive and significant effect on the cost-efficiency of banks, while tighter liquidity requirements hurt cost efficiency. Further, the bank tier-level analysis established that the double-layered regulatory framework creates Cost inefficiencies amongst middle-tier banks. The key policy implication would be to consider reviewing, identifying, and amending the regulatory provisions that are creating inefficiencies among the listed middle-tier banks

Angaben zum Objekt

• Sprache: Englisch

Verweise und Beziehungen

• Erschienen in: Series: KBA Centre for Research on Financial Markets and Policy Working Paper Series ; No. 51

Klassifikation und Themen

• Klassifikation: Wirtschaft ; Financial Institutions and Services: Government Policy and Regulation ; Allocative Efficiency; Cost-Benefit Analysis ; Single Equation Models; Single Variables: Truncated and Censored Models; Switching Regression Models; Threshold Regression Models
• Thema: Bank Regulation ; Cost-Benefit Analysis ; Stochastic Frontier Analysis

Beteiligte, Orts- und Zeitangaben

• Ereignis: Geistige Schöpfung
• (wer): Mulindi, Hillary
• Ereignis: Veröffentlichung
• (wer): Kenya Bankers Association (KBA)
• (wo): Nairobi
• (wann): 2021

Weitere Informationen

• Handle: http://hdl.handle.net/10419/249552
• Letzte Aktualisierung: 10.03.2025, 11:45 MEZ