Financial Structure and Bank Profitability

  title={Financial Structure and Bank Profitability},
  author={Asli Demirg{\"u}ç-Kunt and Harry Huizinga},
Countries differ in the extent to which their financial systems are bank-based or market-based. The financial systems of Germany and Japan, for example, are considered bank-based because banks play a leading role in mobilizing savings, allocating capital, overseeing investment decisions of corporate managers, and providing risk management vehicles. The systems of the United States, and the United Kingdom are considered more market-based. Using bank-level data for a large number of industrial… 
Financial Structure and Bank Performance
This study investigates whether the Jordanian economy is considered as a bank or more a market based economy, reflecting the level of the relative reliance on banks vs. market finance. As further
The Effects of Bank Regulations, Competition and Financial Reforms on MENA Banks’ Profitability
In this paper, we examine the influence of bank regulations, concentration, financial and institutional development on commercial bank margin and profitability across a broad menu of Middle East and
During 2000-2010 cyclical crises, reforms in the banking sector and global expansion of firms drastically transformed the US financial-services market. This paper investigates firm-specific,
Stock Market Development, Bank Concentration, Ownership Structure, and Bank Performance: Evidence from Turkey
Using the the Two-Step Generalized Method of Moments (GMM) described by Arellano and Bond (1991) for dynamic panels, this paper analyzes the profitability of 25 commercial banks in Turkey over the
Bank Size and Financial Risk Exposure on Financial Performance of Commercial Banks in Kenya
The performance of banks in Kenya has become a major concern for economics and policy makers due to the role of banks remaining central in financing economic activities. The study sought to establish
Evaluating The Performance of the Commercial Banks In Georgia
Banking sector is the most important component of financial system. Development of banking system contributes to the stability and sustainable economic growth. While banks determine policies for
Journal of Banking and Financial Economics 2014 nr 1
The macroprudential regulatory framework of Basel III imposes the same minimum capital and liquidity requirements on all banks around the world to ensure global competitiveness of banks. Using an
The Impact of Financing Structure and Macroeconomic Variables on Profitability of listed
ABSTRACT The sustainability of banks profitability is very important to national economy. This is because banking institution serves as financial intermediary and hence supports the flow of funds
Capital Regulation, the Cost of Financial Intermediation and Bank Profitability: Evidence from Bangladesh
In response to the recent global financial crisis, the regulatory authorities in many countries have imposed stringent capital requirements in the form of the BASEL III Accord to ensure financial
The profitability of banks in Japan
This article investigates the profitability of Japanese banks following the major financial crisis that affected the country's economy in the mid-1990s. Further, it examines the determinants of bank


Bank-Based and Market-Based Financial Systems: Cross-Country Comparisons
What are the relative advantages and disadvantages of bank-based financial systems (as in Germany and Japan) and market-based financial systems (as in England and the United States). Does financial
A New Database on Financial Development and Structure
The authors introduce a new database of indicators of financial development and structure across countries and over time. This database is unique in that it unites a variety of indicators that
Stock Markets, Banks, and Economic Growth
Using data on 49 countries from 1976 to 1993, the authors investigate whether measures of stock market liquidity, size, volatility, and integration in world capital markets predict future rates of
Stock market development and firm financing choices
The authors empirically analyze the association between firm financing choices and the level of development of financial markets in 30 countries for the period 1980-91. For the whole sample, there is
Bank-Based or Market-Based Financial Systems: Which is Better?
For over a century, economists and policy makers have debated the relative merits of bank-based versus market-based financial systems. Recent research, however, argues that classifying countries as
Finance and Growth: Schumpeter Might Be Right
Joseph Schumpeter argued in 1911 that the services provided by financial intermediaries - mobilizing savings, evaluating projects, managing risk, monitoring managers, and facilitating transactions
Law, Finance and Firm Growth
We investigate how differences in legal and financial systems affect firms' use of external financing to fund growth. We show that in countries whose legal systems score high on an efficiency index,
Financial Structure, Corporate Finance and Economic Growth
This paper examines how a country’s financial structure affects economic growth through its impact on how corporations raise and manage funds. We define a country’s financial structure to consist of
Financial Dependence and Growth
Does finance affect economic growth? A number of studies have identified a positive correlation between the level of development of a country's financial sector and the rate of growth of its per