Bank bailouts in Europe and bank performance

Maria Gerhardt and Rudi Vander Vennet

Finance Research Letters, 2017, vol. 22, issue C, 74-80

Abstract: During the financial crisis, 114 European banks benefited from government support in Europe. We investigate the financial condition of banks before and after receiving state support using logit regressions. Our results indicate that the equity ratio, loan quality and bank size are the main determinants of bank bailout involvement. However, the aided banks hardly improve their performance indicators in the years following government aid, indicating that bailouts are not sufficient to restore bank health.

Keywords: Bank bailout; State aid; Financial crisis; Logit analysis (search for similar items in EconPapers)
JEL-codes: G21 G28 (search for similar items in EconPapers)
Date: 2017
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Citations: View citations in EconPapers (13)

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Working Paper: BANK BAILOUTS IN EUROPE AND BANK PERFORMANCE (2016)
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Persistent link: https://EconPapers.repec.org/RePEc:eee:finlet:v:22:y:2017:i:c:p:74-80

DOI: 10.1016/j.frl.2016.12.028

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