 Bank liquidity creation: Does ownership structure matter?Nacera Yeddou and Marc Pourroy The Quarterly Review of Economics and Finance, 2020, vol. 78, issue C, 116-131 Abstract: This paper uses a new, hand-collected database on ownership structure for a sample of commercial banks from 17 western European countries to explore the relationship between bank ownership structure and bank liquidity creation over the period 2004–2018. We focus on bank ownership concentration and on the identity of the major owner. Our findings are twofold: first, we find that ownership concentration has a significant and positive impact on liquidity creation. Specifically, we find that banks with over 65 % controlling ownership create more liquidity than other banks. Secondly, we analyze the impact of the nature of the owner on liquidity creation. We find that banks tend to create more liquidity when the owner is another bank or a state, holding a stake above 50 %, 65 % for a non-financial company, 75 % for a family and 85 % for a financial institution. Keywords: Liquidity creation; Bank ownership structure; Liquidity risk; Bank regulation (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:eee:quaeco:v:78:y:2020:i:c:p:116-131 DOI: 10.1016/j.qref.2020.01.003 Access Statistics for this article The Quarterly Review of Economics and Finance is currently edited by R. J. Arnould and J. E. Finnerty More articles in The Quarterly Review of Economics and Finance from Elsevier |
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