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Title: Post-crisis regulatory reforms and bank performance: lessons from Asia
Authors: Casu, Barbara
Deng, Bimei
Ferrari, Alessandra
Keywords: Regulation and deregulation policies
Asian banking markets
Banks’ efficiency
Frontiers
Issue Date: 2017
Publisher: © Informa UK Limited (Taylor & Francis Group)
Citation: CASU, B., DENG, B. and FERRARI, A., 2017. Post-crisis regulatory reforms and bank performance: lessons from Asia. European Journal of Finance, 23 (15), pp.1544-1571
Abstract: Based on a large dataset from eight Asian economies, we test the impact of post-crisis regulatory reforms on the performance of depository institutions in countries at different levels of financial development. We allow for technological heterogeneity and estimate a set of country-level stochastic cost frontiers followed by a deterministic bootstrapped meta-frontier to evaluate cost efficiency and cost technology. Our results support the view that liberalization policies have a positive impact on bank performance, while the reverse is true for prudential regulation policies. The removal of activities restrictions, bank privatization and foreign bank entry has a positive and significant impact on technological progress and cost efficiency. In contrast, prudential policies, which aim to protect the banking sector from excessive risk-taking, tend to adversely affect banks’ cost efficiency but not cost technology.
Description: This is an Accepted Manuscript of an article published by Taylor & Francis Group in The European Journal of Finance on 28/04/2016, available online: https://doi.org/10.1080/1351847X.2016.1177566
Version: Accepted for publication
DOI: 10.1080/1351847X.2016.1177566
URI: https://dspace.lboro.ac.uk/2134/32206
Publisher Link: https://doi.org/10.1080/1351847X.2016.1177566
ISSN: 1351-847X
Appears in Collections:Published Articles (Economics)

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