Banking sector resilience to financial spillovers |
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Authors: | W. Chen S. Hamori |
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Affiliation: | 1. College of Economics and Institute of Finance, Jinan University, Guangzhou, China;2. Graduate School of Economics, Kobe University, Kobe, Japan |
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Abstract: | By using a large sample of bank-level data, we analyse whether the spillover effects of US financial shocks differ with the fundamental characteristics of the banking sectors in the affected countries. We find that a banking sector characterized by a higher degree of competition and larger margin of safety is less affected by financial spillovers. The results are robust to the inclusion of bank-level control variables that capture individual banks’ lending capacity. |
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Keywords: | Financial spillovers banking sector resilience Boone indicator Z-score system GMM estimator |
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