EFFECTS OF GOVERNMENT INTERVENTIONS ON BANK PERFORMANCE
EFFECTS OF GOVERNMENT INTERVENTIONS ON BANK PERFORMANCE
| Autor: | Mgr. Soňa Sivá |
|---|---|
| Ostatní autoři: | |
| Typ: | IES Working Papers |
| Rok: | 2023 |
| Číslo: | 20 |
| ISSN / ISBN: | |
| Publikováno v: | IES Working Papers 20/2023 |
| Místo vydání: | Praha |
| Klíčová slova: | bailout, financial crisis, bank performance |
| JEL kódy: | G21, G28 |
| Citace: | Sivá S. (2023): "Effects of Government Interventions on Bank Performance" IES Working Papers 20/2023. IES FSV. Charles University. |
| Abstrakt: | This paper evaluates the effects of government bailout policies on bank performance in the EU banking sector. Using a unique dataset of government supports, I identify banks which received state support in years 2008-2014 and corresponding control group of banks. I apply difference-in-differences method and extend it by propensity score matching and inverse probability of weighting methods to account for non-randomness of a treatment. My results suggest that aided banks overtook non-aided ones in terms of lending activity in both, the EU Core and EU Periphery, but it was accompanied by increased non-performing loans ratio (NPL) in the EU Periphery. Finally, I show these results differ from the developments in the US. TARP recipients improved their capital adequacy compared to non-intervened banks and returned to pre-crisis level in terms of NPL and profitability. |
| Ke stažení: | wp_2023_20_siva.pdf |
