Bank Survival in Central and Eastern Europe
Evžen Kočenda () and
Ichiro Iwasaki ()
No 382, Working Papers from Leibniz Institut für Ost- und Südosteuropaforschung (Institute for East and Southeast European Studies)
We analyze bank survival on large dataset covering 17 CEE markets during the period of 2007–2015 by estimating the Cox proportional hazards model. We group banks across countries and according to their financial soundness. Our results show that progress in banking reforms positively affects bank survival. During global financial crisis, banking reform progress is not linked with improved survival probability, though. On the other hand, during the European sovereign debt crisis and afterwards, banking reform progress contributes to improve survival probability substantially. The economic impact of various determinants is largest for average banks measured by their soundness. Financial indicators predict bank survival rate with intuitively expected impact that is economically less significant in comparison to other factors. Specifically, ownership structure and legal form are the key economically significant factors that exhibit strongest economic effect on bank survival. We further document importance of banks being listed with respect to their survival. We also show that probability of exit increases after number of directors increases beyond a threshold. The results are robust with respect to bank grouping, alternative model specifications, and alternative assumptions on survival distribution.
Keywords: bank survival; banking reform; European emerging markets; survival and exit determinants; hazards model (search for similar items in EconPapers)
JEL-codes: C14 D02 D22 G33 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-ban and nep-tra
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)
Working Paper: Bank Survival in Central and Eastern Europe (2020)
Working Paper: Bank Survival in European Emerging Markets (2018)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:ost:wpaper:382
Ordering information: This working paper can be ordered from
Access Statistics for this paper
More papers in Working Papers from Leibniz Institut für Ost- und Südosteuropaforschung (Institute for East and Southeast European Studies) Contact information at EDIRC.
Bibliographic data for series maintained by Kseniia Gatskova ().