Banking crises and market discipline: International evidence

By E. Cubillas, A. Fonseca, F. González. 2012

120 citations recorded by the source corpus.

This paper analyzes the effect of banking crises on market discipline in an international sample of banks. We also evaluate how bank regulation, supervision, institutions, and crisis intervention policies shape the effect of banking crises on market discipline. We control for unobservable bank, country, and time specific effects using a panel data set of banks from 66 countries around 79 banking crises. The results suggest that on average market discipline weakens after a banking crisis. This weakening is higher in countries where bank regulation, supervision, and institutions promoted market discipline before the banking crisis, and where a more accommodative approach is adopted to resolve it.

Subfields: Accounting, Finance

View Paper: https://www.semanticscholar.org/paper/0c80442e33136c281cd6179ee2d4313f2c602c1c

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In Accounting

1. Yun Luo
2. Glauco De Vita
3. Sailesh Tanna

In Finance

1. Yun Luo
2. Glauco De Vita
3. Sailesh Tanna

Citations in the corpus

• Financial openness, risk and bank efficiency: Cross-country evidence (2016, methodology): “Kroszner et al. (2007), Dell'Ariccia et al. (2008), Cubillas et al. (2012), and Fernández et al. (2013) have also used this definition to capture the effect of the crises.”