Credit and bank opaqueness: How to avoid financial crises?

Helder de Mendonça (), Délio José Cordeiro Galvão and Renato Falci Villela Loures

Economic Modelling, 2013, vol. 33, issue C, 605-612

Abstract: This study makes a contribution to the literature on bank opaqueness and bank credit through empirical evidence gathered from data of 310 NYSE and NASDAQ banks for the period 1Q1990 to 4Q2009. In addition to developing an opacity index based on bank risk information, the empirical analysis identifies and considers events of credit sudden stops. The main conclusion is that a decrease in bank opaqueness fosters an environment favorable to the development of a sound banking system, which, in turn, facilitates the strengthening of the credit chain and the avoidance of financial crises.

Keywords: Bank opaqueness; Bank credit; Credit sudden stop; Financial crisis (search for similar items in EconPapers)
JEL-codes: E51 G14 G15 (search for similar items in EconPapers)
Date: 2013
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:ecmode:v:33:y:2013:i:c:p:605-612

DOI: 10.1016/j.econmod.2013.05.001

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