nach oben

Annals of Finance

Erschienen in:

26.09.2017 | Research Article

Regulation, supervision and deposit insurance for financial cooperatives: an empirical investigation

verfasst von: Amr Khafagy

Erschienen in: Annals of Finance | Ausgabe 2/2018

Einloggen

Aktivieren Sie unsere intelligente Suche, um passende Fachinhalte oder Patente zu finden.

search-config

KI-gestützte Suche

Aus

Abstract

This paper analyses the impact of different regulation and supervision approaches, as well as deposit insurance schemes, on the development of financial cooperatives in developing countries, using random and fixed effects estimators. Information on laws regulating financial cooperatives, the supervisory approaches adopted, and deposit insurance schemes in sixty-five developing countries were collected—mostly—from original legislations for the period 1995–2014. Key findings suggest that indicators of financial cooperative development are positively correlated with the existence of a specialized regulation; supervision under non-bank financial supervisory authorities; and the presence of deposit insurance schemes, while general cooperative society’s regulations and banking regulations are negatively correlated with financial cooperatives’ indicators. These results are robust after controlling for economic and institutional factors as well as potential endogeneity bias.

Nächster Artikel Approximate option pricing and hedging in the CEV model via path-wise comparison of stochastic processes

Sie haben noch keine Lizenz? Dann Informieren Sie sich jetzt über unsere Produkte:

Springer Professional "Wirtschaft+Technik"

Online-Abonnement

Mit Springer Professional "Wirtschaft+Technik" erhalten Sie Zugriff auf:

über 102.000 Bücher
über 537 Zeitschriften

aus folgenden Fachgebieten:

Automobil + Motoren
Bauwesen + Immobilien
Business IT + Informatik
Elektrotechnik + Elektronik
Energie + Nachhaltigkeit
Finance + Banking
Management + Führung
Marketing + Vertrieb
Maschinenbau + Werkstoffe
Versicherung + Risiko

Jetzt Wissensvorsprung sichern!

Jetzt informieren

Springer Professional "Wirtschaft"

Online-Abonnement

Mit Springer Professional "Wirtschaft" erhalten Sie Zugriff auf:

über 67.000 Bücher
über 340 Zeitschriften

aus folgenden Fachgebieten:

Bauwesen + Immobilien
Business IT + Informatik
Finance + Banking
Management + Führung
Marketing + Vertrieb
Versicherung + Risiko

Jetzt Wissensvorsprung sichern!

Jetzt informieren

Nur mit Berechtigung zugänglich

See Berger et al. (2005), Cuevas and Fischer (2006: 55), Hesse and Čihák (2007), Ayadi et al. (2010: 116), Tchuigoua (2011), Birchall (2013: 24), Hasan et al. (2014), and Butzbach and von Mettenheim (2014: 33–41) for a comprehensive overview on empirical literature on the comparative performance of financial cooperatives.

A list of all laws and sources reviewed is available upon request.

For detailed overview on the advantages and disadvantages of panel data see Baltagi (2005: 1–9).

United Nations (2003, pp. 10) cited by Cuevas and Fischer (2006, pp. 1).

In Kenya by the SACCO Societies Regulatory Authority since 2008 and South Africa by the Co-operative Banks Development Agency CBDA since 2007.

Adams, D.: Using credit unions for micro-enterprise lending insights: Latin America. In: Balkenhol, B. (ed.) Credit Unions and the Poverty Challenge: Extending Outreach, Enhancing Sustainability, pp. 37–50. Geneva: International Labour Organisation (1999)

Akande, O.R., Abu, O., Obekpa, H.O.: Microfinance organizations in Africa: the challenge of transforming into regulated organizations. In: Entrepreneurship and SME Management Across Africa, pp. 67–86. Singapore: Springer (2016)

Alston, L.J., Grove, W.A., Wheelock, D.C.: Why do banks fail? Evidence from the 1920s. Explor Econ Hist 31, 409–431 (1994)CrossRef

Ayadi, R., Llewellyn, D.T., Schmidt, R.H., Arbak, E., Pieter De Groen, W.: Investigating Diversity in the Banking Sector in Europe: Key Developments, Performance and Role of Cooperative Banks. Brussels: CEPS (2010)

Baltagi, B.H.: Econometric Analysis of Panel Data, 3rd edn. New York: Wiley (2005)

Bamrungwon, C.: State control over cooperatives in co-operative legislation. In: Münkner, H.H. (eds.) The Relationship Between the State and Cooperatives in Cooperative Legislation, pp. 55–63. Geneva: International Labour Organisation (1994)

BCBS: Core Principles for Effective Banking Supervision. Basel: Basel Committee on Banking Supervision (2012)

BCBS: Range of Practice in the Regulation and Supervision of Institutions Relevant to Financial Inclusion. Basel: Basel Committee on Banking Supervision (2015a)

BCBS: Guidance on the Application of the Core Principles for Effective Banking Supervision to the Regulation and Supervision of Institutions Relevant to Financial Inclusion. Basel: Basel Committee on Banking Supervision (2015b)

Beck, T.: The incentive-compatible design of deposit insurance and bank failure resolution. In: Mayes, D.G., Liuksila, A (eds.) Who Pays for Bank Insolvency? pp. 118–141. Palgrave Macmillan, London (2004)

Beck, T., Demirguc-Kunt, A., Levine, R.: A New Database on Financial Development and Structure, World Bank Policy Research Working Paper no. 2146. Washington: World Bank (1999)

Berger, A.N., Miller, N.H., Petersen, M.A., Rajan, R.G., Stein, J.C.: Does function follow organizational form? Evidence from the lending practices of large and small banks. J Financ Econ 76, 237–269 (2005)CrossRef

Birchall, J.: Resilience in a Downturn: The Power of Financial Cooperatives. Geneva: International Labour Organisation (2013)

Branch, B., Baker, C.: Overcoming governance problems. In: Westley, G., Branch, B. (eds.) Safe Money: Building Effective Credit Unions in Latin America, pp. 203–223. Washington, DC: Inter-American Development Bank (2000)

Branch, B., Grace, D.: Technical Guide: Credit Union Regulation and Supervision. Wisconsin: World Council of Credit Unions (2008)

Butzbach, O., von Mettenheim, K.: The comparative performance of alternative banks before the 2007–8 crisis. In: Butzbach, O., von Mettenheim, K. (eds.) Alternative Banking and Financial Crisis, pp. 29–42. Pickering and Chatto (2014)

Cuevas, C.E., Fischer, K.P.: Cooperative Financial Institutions: Issues in Governance, Regulation, and Supervision (No. 82). Washington, DC: World Bank (2006)

Cull, R., Demirgüç-Kunt, A., Morduch, J.: Does regulatory supervision curtail microfinance profitability and outreach? World Dev 39, 949–965 (2011)CrossRef

Davis, K.: Prudential regulation and Australian credit unions. Aust J Manag 19, 31–46 (1994)CrossRef

Demirgüç-Kunta, A., Detragiache, E.: Does deposit insurance increase banking system stability? An empirical investigation. J Monetary Econ 49, 1373–1406 (2002)CrossRef

Desrochers, M., Fischer, K.P.: Theory and Test on the Corporate Governance of Financial Cooperative Systems: Merger vs. Networks, Working Paper 03-34. Vancouver: CIRPÉE (2003)

Esty, B.C.: Organizational form and risk taking in the savings and loan industry. J Financ Econ 44, 25–55 (1997)CrossRef

Ferguson, C., McKillop, D.G.: Classifying credit union development in terms of mature, transition and nascent industry types. Serv Ind J 20, 103–120 (2000)CrossRef

Gropp, R., Vesala, J.: Deposit insurance, moral hazard and market monitoring. Rev Financ 84, 571–602 (2004)

Grossman, R.S.: Deposit Insurance, Regulation, and Moral Hazard in the Thrift Industry: Evidence from the 1930’s. Am Econ Rev 82(4), 800–821 (1992)

Guinnane, T.W.: Regional organizations in the German cooperative banking system in the late 19th century. Res Econom 513, 251–274 (1997)CrossRef

Hannafin, K., Mckillop, D.: Deposit insurance and credit unions: an international perspective. J Financ Regul Compl 15, 42–62 (2007)CrossRef

Hartarska, V., Nadolnyak, D.: Do regulated microfinance institutions achieve better sustainability and outreach? Cross-country evidence. Appl Econ 39, 1207–1222 (2007)CrossRef

Hasan, I., Jackowicz, K., Kowalewski, O., Kozłowski, Ł.: Bank Ownership Structure, SME Lending and Local Credit Markets. Research Discussion Papers No. 22. Helsinki: Bank of Finland (2014)

Hesse, H., Čihák, M.: Cooperative Banks and Financial Stability. Working Paper No. 07/2. Washington, DC: International Monetary Fund (2007)

Hovakimian, A., Kane, E.J., Laeven, L.: How country and safety-net characteristics affect bank risk-shifting. J Financ Serv Res 23, 177–204 (2003)CrossRef

International Monetary Fund: World Economic Outlook: Growth Resuming. International Monetary Fund, Dangers Remain. World Economic and Financial Surveys. Washington (2012)

Ioannidou, V.P., Penas, M.F.: Deposit insurance and bank risk-taking: evidence from internal loan ratings. J Financ Intermed 19, 95–115 (2010)CrossRef

Jansson, T., Rosales, R., Westley, G.D.: Principles and Practices for Regulating and Supervising Microfinance. Washington, DC: Inter-American Development Bank (2004)

Karels, G.V., McClatchey, C.A.: Deposit insurance and risk-taking behavior in the credit union industry. J Bank Financ 23, 105–134 (1999)CrossRef

Khafagy, A.: Political institutions and financial cooperative development. J Inst Econ 13, 467–498 (2017)

La Porta, R., Lopez-de-Silanes, F., Shleifer, A., Vishny, R.: The quality of government. J Law Econ Organ 15, 222–279 (1999)CrossRef

Münkner, H.H.: Participative law-making: a new approach to drafting cooperative law in developing countries. VRÜ 19, 123–137 (1986)CrossRef

Münkner, H.H.: Ensuring supportive legal frameworks for co-operative growth. Paper presented at the ICA 11th Regional Assembly, Nairobi (2014)

Musumal C.: Summary of the discussions. In: The Relationship Between the State and Cooperatives in Cooperative Legislation, pp. 155–162. Geneva: International Labour Organisation (1994)

Périlleux, A., Vanroose, A., D’Espallier, B.: Are financial cooperatives crowded out by commercial banks in the process of financial sector development? Kyklos 69, 108–134 (2016)CrossRef

Poprawa, A.: Regulation and legislation of cooperative banks and credit unions. In: Prepared for United Nations Expert Group Meeting on Cooperatives, pp. 28–30. New York (2009)

Poyo, J.: Expansion of Rural Financial Services: The Development of a Community-Based Rural Credit Union Network in the Dominican Republic (1984–1993). Geneva: International Labour Office (1995)

Poyo, J.: Regulation and supervision of credit unions. In Westley, G., Branch, B. (eds.) Safe Money: Building Effective Credit Unions in Latin America, pp. 137–160. Washington, DC: Inter-American Development Bank (2000)

Stata Press: Stata longitudinal-data/panel-data reference manual: release 13. Stata Press (2013)

Taylor, R.A.: The credit union as a cooperative institution. Rev Soc Econ 29, 207–217 (1971)CrossRef

Tchuigoua, H.T.: A comparative study of microfinance institutions performance in Sub-Saharan Africa according to their legal status. Ann Publ Cooper Econ 82, 63–76 (2011)CrossRef

United Nations: Environment for Cooperatives: A Stakeholder Dialogue on Definitions, Prerequisites and Process of Creation. New York: United Nations Department of Economic and Social Affairs (2003)

Westley G., Shaffer, S.: Credit union delinquency and profitability. In Westley, G., Branch, B. (eds.) Safe Money: Building Effective Credit Unions in Latin America, pp. 61–90. Washington, DC: Inter-American Development Bank (2000)

World Council of Credit Unions: Model Law for Credit Unions. Wisconsin: World Council of Credit Unions (2015)

Titel: Regulation, supervision and deposit insurance for financial cooperatives: an empirical investigation
verfasst von: Amr Khafagy
Publikationsdatum: 26.09.2017
Verlag: Springer Berlin Heidelberg
Erschienen in: Annals of Finance / Ausgabe 2/2018
Print ISSN: 1614-2446
Elektronische ISSN: 1614-2454
DOI: https://doi.org/10.1007/s10436-017-0307-y

Springer Professional

Abstract

Bitte loggen Sie sich ein, um Zugang zu Ihrer Lizenz zu erhalten.

Sie haben noch keine Lizenz? Dann Informieren Sie sich jetzt über unsere Produkte:

Springer Professional "Wirtschaft+Technik"

Springer Professional "Wirtschaft"

Weitere Artikel der Ausgabe 2/2018

Financial equilibrium with non-linear valuations

Approximate option pricing and hedging in the CEV model via path-wise comparison of stochastic processes

On the implied market price of risk under the stochastic numéraire

Asset market equilibrium with liquidity risk