The DOI matches its Crossref record; 31 of the 31 references it cites were found in a registry or an index.
Efficiency and risk in European banking
Open accessAbstract
We assess the inter-temporal relationship between bank efficiency, capital and risk in a sample of European commercial banks employing several definitions of efficiency, risk and capital and using the Granger-causality methodology in a panel data framework. Our results suggest that lower bank efficiency with respect to costs and revenues Granger-causes higher bank risk and that increases in bank capital precede cost efficiency improvements. We also find that more efficient banks eventually become better capitalized and that higher capital levels tend to have a positive effect on efficiency levels. These results are generally confirmed by a series of robustness tests. The results have potentially important implications for bank prudential supervision and underline the importance of attaining long-term efficiency gains to support financial stability objectives.
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Cites
Investigating causal relations by econometric models and cross-spectral methods
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Another look at the instrumental variable estimation of error-components models
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Initial conditions and moment restrictions in dynamic panel data models
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The Theory of Bank Risk Taking and Competition Revisited
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Cited by
Does bank FinTech reduce credit risk? Evidence from China
Cheng, M., & Qu, Y. (2020) · Pacific-Basin Finance Journal · doi:10.1016/j.pacfin.2020.101398 · Cited by 498
Do ESG strategies enhance bank stability during financial turmoil? Evidence from Europe
Chiaramonte, L., Dreassi, A., Girardone, C., & Piserà, S. (2022) · The European Journal of Finance · doi:10.1080/1351847x.2021.1964556 · Cited by 389
Competition and financial stability in European cooperative banks
Fiordelisi, F., & Mare, D. S. (2014) · Journal of International Money and Finance · doi:10.1016/j.jimonfin.2014.02.008 · Cited by 332
Self-citationGangi, F., Meles, A., D'Angelo, E., & Daniele, L. M. (2019) · Corporate Social Responsibility and Environmental Management · doi:10.1002/csr.1699 · Cited by 331
Bank capital buffer and portfolio risk: The influence of business cycle and revenue diversification
Shim, J. (2013) · Journal of Banking & Finance · doi:10.1016/j.jbankfin.2012.10.002 · Cited by 292
Metadata
- Authors
- Fiordelisi, F., Marques-Ibanez, D., & Molyneux, P.
- Venue
- Journal of Banking & Finance
- Publisher
- Elsevier BV
- Published
- 2011-05
- Volume
- 35
- Issue
- 5
- Pages
- 1315-1326
- ISSN
- 0378-4266 (ISSN-L)
- OpenAlex
- W3122006740
- Cited by
- 656
- References
- 31
- FWCI
- 37.06
- Type
- journal article
- Language
- en
- Open access
- green
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- Fiordelisi, F., Marques-Ibanez, D., & Molyneux, P. (2011). Efficiency and risk in European banking. Journal of Banking & Finance. https://doi.org/10.1016/j.jbankfin.2010.10.005
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Contains information from the Semantic Scholar Academic Graph Datasets, made available under the ODC Attribution License (ODC-BY 1.0).
Semantic Scholar’s data is described in: Kinney, R., et al. (2023). The Semantic Scholar Open Data Platform. arXiv:2301.10140.