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2017 | OriginalPaper | Chapter

The Effect of Financial Crises on Banking Performance in Developed and Emerging Economies

Authors : Necla Tunay, Nesrin Özataç, K. Batu Tunay

Published in: New Challenges in Banking and Finance

Publisher: Springer International Publishing

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Abstract

The aim of the study is to examine the effect of crises on the stability of the bankingsystem in 46 developed and emerging economies for the years 1999–2014. The variables are tested by using the two-step dynamic panel data analysis. The results indicate that the banking crises have an impact on the banking system stability. On the other hand, it is obsereved that the comparative conditions and the volatility on asset prices are the determinants on performance-stability relations. The most important finding is that the credit to GDP gap influence bank performance negatively.

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Appendix
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Footnotes
1
In the Turkish Banking system, concerning different periods, both studies prove that crises have a negative effect on ROA and ROA, whereas the effect on NIM is positive.
 
2
Kamarudin et al. (2016) concluded that bank size, liquidity, economic growth and sector concentration variables have a negative effect on the profitability of public banks, while private banks see positive effects. Capitalization, credit risk and inflation, however, affect the profit of public banks positively and the efficiency of private banks negatively.
 
3
Bhimjee et al. (2016) used panel regime-switching modelling in their analysis.
 
4
Ramlan and Adnan (2016) did the analysis on Malesia, while Rashid and Jabeen (2016) investigated Pakistan. They found that the crises had a direct effect on performance. Regarding their comparative analysis, they pointed out that Islamic banks showed a better profitability perfomance during the global crisis period.
 
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Metadata
Title
The Effect of Financial Crises on Banking Performance in Developed and Emerging Economies
Authors
Necla Tunay
Nesrin Özataç
K. Batu Tunay
Copyright Year
2017
DOI
https://doi.org/10.1007/978-3-319-66872-7_2