Bank regulations and income inequality: Empirical evidence

Manthos Delis (), Iftekhar Hasan and Pantelis Kazakis

MPRA Paper from University Library of Munich, Germany

Abstract: This paper provides cross-country evidence that variations in bank regulatory policies result in differences in income distribution. In particular, market discipline (private monitoring) and activity restrictions have an unambiguously positive and significant effect on income inequality and poverty, and this effect holds regardless of the level of economic and institutional development. In contrast, more stringent bank capital regulation and enhanced official supervisory power tend to reduce income inequality. However, this latter effect fades away for countries with low levels of economic and institutional development. We contend that these findings have new implications for the effects of bank regulations besides those related to their impact on financial stability.

Keywords: Bank regulations; Income inequality; Cross-country panel data (search for similar items in EconPapers)
JEL-codes: G28 O15 O16 (search for similar items in EconPapers)
Date: 2010-12-01
New Economics Papers: this item is included in nep-ban and nep-reg
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (13)

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https://mpra.ub.uni-muenchen.de/34081/1/MPRA_paper_34081.pdf revised version (application/pdf)

Related works:
Journal Article: Bank Regulations and Income Inequality: Empirical Evidence (2014)
Working Paper: Bank regulations and income inequality: Empirical evidence (2012)
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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:27379

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