How effective are banking regulations on banking performance and risk? Evidence from selected European countries

Ahmed Bouteska, Burak Büyükoğlu and Ibrahim Halil Ekşi

Finance Research Letters, 2023, vol. 53, issue C

Abstract: The study examined the impact of capital requirements, activity restrictions, and supervisory powers on bank performance and risk. Within this framework, a GMM system analysis was conducted using data from 136 deposit banks operating in 28 European countries between 2011 and 2020. As a result of the analysis, it has been determined that activity restrictions and capital requirements have a negative effect on performance, while supervisory powers have a positive effect. In addition, it has been found that capital requirements and supervision are inversely related to credit risk.

Keywords: Banking regulations; Banking performance; Banking risk (search for similar items in EconPapers)
JEL-codes: G17 G21 G32 (search for similar items in EconPapers)
Date: 2023
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Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:finlet:v:53:y:2023:i:c:s1544612322007802

DOI: 10.1016/j.frl.2022.103604

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