Corporate governance and procyclicality in a banking crisis: Empirical evidence and implications

Francisco Ibañez, Miguel A. Peña-Cerezo and Andrés Araujo-de-la-Mata

Finance Research Letters, 2019, vol. 30, issue C, 271-275

Abstract: This paper presents our analysis of a complete financial data set on the population of Spanish deposit institutions for the last credit cycle. This information is combined with details about the characteristics of the corporate governance of the banks. Our results show that in a context of rapid credit growth (2002–2007), only financial institutions managed with political criteria have eventually experienced serious solvency problems (2008–2017) and have finally had to be bailed out with public resources. These results are particularly relevant for the establishment of appropriate prudential policies in countries where a government-owned banking system still exists.

Keywords: Financial crisis; Bank bailout; Procyclicality; Corporate governance; Politically motivated lending; Connected lending (search for similar items in EconPapers)
JEL-codes: G21 G28 G32 (search for similar items in EconPapers)
Date: 2019
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S154461231830494X
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:finlet:v:30:y:2019:i:c:p:271-275

DOI: 10.1016/j.frl.2018.10.011

Access Statistics for this article

Finance Research Letters is currently edited by R. Gençay

More articles in Finance Research Letters from Elsevier
Bibliographic data for series maintained by Catherine Liu ().