Economics at your fingertips  

Establishing the Contributing Factors to the Resurrection of PIIGS Banks Following the Crisis: A Panel Data Analysis

Esteban Miguélez, Jonathan Spiteri and Simon Grima ()

International Journal of Economics & Business Administration (IJEBA), 2019, vol. VII, issue 1, 3-34

Abstract: In this article, we analyse empirically the factors that allowed for the improvement and strengthening of the banking systems in Greece, Ireland, Italy, Portugal and Spain (known as the PIIGS) during the post-financial crisis period 2011-2016. We use panel data on 200 banks and measure their financial soundness using the z-score. Our results show that the improvement is mainly due to managerial factors. To ensure stability, banks must monitor their loans and avoid non-performing loans. The public authorities should try to control banks’ size, encouraging medium-sized banks since these tend to perform better on average while limiting the existence of banks, whose size and importance (despite economies of scale) can destabilize the entire system in case of bankruptcy. Finally, different from previous studies, we include herein the refinancing programmes into the analysis of financial soundness and show that the financial assistance programs have been necessary to ensure the recovery of the banking systems.

Keywords: Panel Data; European Banks; PIIGs; Crisis; Banking System. (search for similar items in EconPapers)
JEL-codes: G21 G24 (search for similar items in EconPapers)
Date: 2019
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1) Track citations by RSS feed

Downloads: (external link) (application/pdf)

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:

Access Statistics for this article

More articles in International Journal of Economics & Business Administration (IJEBA) from International Journal of Economics & Business Administration (IJEBA)
Bibliographic data for series maintained by Marios Agiomavritis (). This e-mail address is bad, please contact .

Page updated 2020-08-08
Handle: RePEc:ers:ijebaa:v:vii:y:2019:i:1:p:3-34