Financial sector transparency, financial crises and market power: A cross‐country evidence

Baah Kusi, Elikplimi Agbloyor, Agyapomaa Gyeke‐Dako and Simplice Asongu

International Journal of Finance & Economics, 2022, vol. 27, issue 4, 4431-4450

Abstract: The study investigates how financial sector transparency moderates the influence of financial crises on bank market power across 75 economies between 2004 and 2014. Using two‐step dynamic system generalized method of moments the study shows that while public sector‐led financial sector transparency reduces bank market power, private sector‐led financial sector transparency promotes bank market power given that private sector‐led transparency gives financial cost advantage to financially sound banks to solidify the market power and dominance. Similarly, while financial crises reduce the market power of banks implying that during financial crises banks lose their market power, financial sector transparency promotes the negative effect of financial crises on bank market power. This implies that during financial crises, financial sector transparency whether enforced through private or public sector, boosts the weakening effect of financial crises on bank market power. These findings imply that regulators can rely on financial transparency to tame bank market power to enhance banking competitiveness. The findings and results are consistent even when country, time and continental effects are controlled for.

Date: 2022
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://doi.org/10.1002/ijfe.2380

Related works:
Working Paper: Financial Sector Transparency, Financial Crises and Market Power: A Cross-Country Evidence (2020)
Working Paper: Financial Sector Transparency, Financial Crises and Market Power: A Cross-Country Evidence (2020)
Working Paper: Financial Sector Transparency, Financial Crises and Market Power: A Cross-Country Evidence (2020)
Working Paper: Financial Sector Transparency, Financial Crises and Market Power: A Cross-Country Evidence (2020)
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:wly:ijfiec:v:27:y:2022:i:4:p:4431-4450

Ordering information: This journal article can be ordered from
http://jws-edcv.wile ... PRINT_ISSN=1076-9307

Access Statistics for this article

International Journal of Finance & Economics is currently edited by Mark P. Taylor, Keith Cuthbertson and Michael P. Dooley

More articles in International Journal of Finance & Economics from John Wiley & Sons, Ltd.
Bibliographic data for series maintained by Wiley Content Delivery ().