The performance of European banks after government bailouts.
| Author: | Mgr. Soňa Sivá |
|---|---|
| Year: | 2022 - winter |
| Leaders: | PhDr. Jaromír Baxa Ph.D. |
| Consultants: | |
| Work type: | Economic Theory Masters |
| Language: | English |
| Pages: | 74 |
| Awards and prizes: | |
| Link: | https://dspace.cuni.cz/handle/20.500.11956/171362 |
| Abstract: | This thesis examines effects of government interventions associated with the 2008 financial crisis on bank performance in the EU with the specific focus on differencies in impacts between EU core and EU periphery banks as well as between EU and US banks. Using hand-collected data on financial support in the EU and US Treasury data on US TARP participants together with the balance sheet data from The Banker Database, I construct the treatment and control group of banks. To estimate the change in four performance indicators of intervened banks, difference-in-differences method is applied. Two main conclusions are made. Firstly, government support led to improvement in capital adequacy in the EU core countries' banks as well as in the US banks. Secondly, intervened banks of the EU periphery are found to increase their lending which is, however, accompanied by higher ratio of non-performing loans. |
