Work detail

Bank regulatory standards and supervision: //The impact on the of banks´ efficiency

Author: Bc. Andrea Kufnerová
Year: 2016 - summer
Leaders:
Consultants:
Work type: Finance, Financial Markets and Banking
Masters
Language: English
Pages: 98
Awards and prizes:
Link: https://is.cuni.cz/webapps/zzp/detail/152007/
Abstract: This thesis examines the bank efficiency and the impact of the regulatory and supervisory
instruments on the efficiency of banks actively performing on the financial markets in the
countries of European Union. Our analysis concerns 8-year time period, covering also the
period of global financial crisis with the aim to determine possible changes in the relationship
regulation versus efficiency. We apply SFA Fourier-flexible model for estimation of profit and
cost efficiency scores. Consequently we use GLS panel data estimation in order to test for the
regulatory determinants of efficiency, we have specified 6 various models with the focus on
different regulatory instruments. Results firstly suggest that high cost efficiency does not
necessarily imply high bank profit efficiency. Secondly, we uncovered the negative relation
between market concentration, the level of development of financial market and the cost
efficiency of foreign banks. Thirdly, we also found evidence supporting the assumption of
positive impact of private monitoring and the independence of supervisory authority implying
the increasing of transparency in the market. Additionally, we uncovered support for negative
effect of activity and diversification restrictions. However, the results concerning the financial
crisis period are intensified and some variables are providing support for different effects.
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