Do depositors discipline the banking sector? Evidence from an emerging economy

IF 3.6 Q1 BUSINESS, FINANCE Review of Accounting and Finance Pub Date : 2023-03-02 DOI:10.1108/raf-09-2022-0271
Ayesha Afzal, Nawazish Mirza, S. Firdousi
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引用次数: 4

Abstract

Purpose Market discipline is an important part of financial regulation, under Basel II and III. This paper aims to provide evidence on market discipline in Pakistan. Specifically, the authors have analyzed the impact of CAMEL variables on costs of funds and deposit switching. Design/methodology/approach This study has used panel data related to different banking and macroeconomic variables. The sample period is 2004–2017 so it has covered the changing regulations that became binding for banks under Basel II and III. Quarterly data has been collected from the financial disclosure of publicly listed banks. The total number of banks in the sample is 26. Among these, 24 are publicly listed. Foreign banks have not been included because their activities in Pakistan are quite limited. Findings It has been found that efficiency, liquidity, asset quality and capital adequacy are negatively related to costs of funds for banks. Capital adequacy, liquidity and profitability are negatively related to deposit switching. Research limitations/implications These results indicate the presence of market discipline and have generated valuable implications for bank managers and regulators. Originality/value In this study, the case of Pakistan is interesting. The country has experienced financial liberalization that sought to avoid government intervention and encourage a more “market-based” approach. This change in the system was made more pronounced by the privatization of nationalized banks, improvement in the market structure, reduction in barriers to entry and consolidation of smaller banks. As a result, the banking system has emerged as an important source of financing and it provides us motivation to look deeper into depositor discipline in banking sector.
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存款人会约束银行业吗?新兴经济体的证据
目的根据巴塞尔协议II和III,市场纪律是金融监管的重要组成部分。本文旨在为巴基斯坦的市场纪律提供证据。具体而言,作者分析了CAMEL变量对资金成本和存款转换的影响。设计/方法/方法本研究使用了与不同银行和宏观经济变量相关的面板数据。样本期为2004年至2017年,因此涵盖了根据《巴塞尔协议II》和《巴塞尔协议III》对银行具有约束力的不断变化的法规。季度数据是从上市银行的财务披露中收集的。样本中的银行总数为26家。其中,有24家上市公司。外国银行没有被包括在内,因为它们在巴基斯坦的活动非常有限。研究发现,效率、流动性、资产质量和资本充足率与银行资金成本呈负相关。资本充足率、流动性和盈利能力与存款转换呈负相关。研究局限性/影响这些结果表明了市场纪律的存在,并对银行经理和监管机构产生了宝贵的影响。原创性/价值在这项研究中,巴基斯坦的案例很有趣。该国经历了金融自由化,试图避免政府干预,鼓励采取更“基于市场”的方法。国有化银行的私有化、市场结构的改善、进入壁垒的减少以及小型银行的合并使这一制度的变化更加明显。因此,银行系统已成为一个重要的融资来源,它为我们提供了深入研究银行业储户纪律的动力。
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来源期刊
CiteScore
4.30
自引率
0.00%
发文量
18
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