Regional Bank Efficiency and its Effect on Regional Growth in Normal and Bad Times

Konferenzbeitrag

The financial crisis affected regions in Europe in a different magnitude. We examine whether regions which incorporate banks with a higher intermediation quality grow faster using a sample which includes the aftermath of the financial crisis. We measure the intermediation quality of a bank by estimating a its profit and cost efficiency. Next, we aggregate the efficiencies of all banks within a NUTS 2 region to obtain a regional proxy for financial quality in twelve European countries. Our results show that relatively more profit efficient banks foster the economic growth in their region. The link between financial quality and growth is valid in normal times as well as in bad ones.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: Beiträge zur Jahrestagung des Vereins für Socialpolitik 2015: Ökonomische Entwicklung - Theorie und Politik - Session: Finance and Banks II ; No. F09-V2

Classification and Topics

• Classification: Wirtschaft ; Banks; Depository Institutions; Micro Finance Institutions; Mortgages ; Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence ; Economywide Country Studies: Europe

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Haskamp, Ulrich ; Setzer, Ralph ; Belke, Ansgar
• Event: Veröffentlichung
• (when): 2015

Further information

• Handle: http://hdl.handle.net/10419/112824
• Last update: 10.03.2025, 11:42 AM CET