Bank Profit Efficiency and Financial Consumer Protection Policies

41 Pages Posted: 13 Feb 2018

See all articles by Fotios Pasiouras

Fotios Pasiouras

GSCM-Montpellier Business School

Chrysovalantis Gaganis

University of Crete - Faculty of Social Sciences - Department of Economics

Emilios C. Galariotis

Audencia Business School

Christos Staikouras

Athens University of Economics and Business - Department of Accounting and Finance

Date Written: February 1, 2018

Abstract

Using a sample of 1,619 commercial banks from 82 countries we investigate the impact of financial consumer protection policies on bank profit efficiency estimated with a production frontier function. Our results show that more regulatory requirements decrease bank profit efficiency. We confirm this finding under various assumptions for the bank inputs and outputs used in their production process. We also find that the impact of financial consumer protection policies on bank profit efficiency is conditional on a country’s overall level of development, institutional quality, and financial freedom.

Keywords: Banks, Efficiency, Financial consumer protection

JEL Classification: G21, D18

Suggested Citation

Pasiouras, Fotios and Gaganis, Chrysovalantis and Galariotis, Emilios C. and Staikouras, Christos, Bank Profit Efficiency and Financial Consumer Protection Policies (February 1, 2018). Available at SSRN: https://ssrn.com/abstract=3116258 or http://dx.doi.org/10.2139/ssrn.3116258

Fotios Pasiouras (Contact Author)

GSCM-Montpellier Business School ( email )

2300, Avenue des Moulins
Montpellier, 34185
France

Chrysovalantis Gaganis

University of Crete - Faculty of Social Sciences - Department of Economics ( email )

University Campus
Rethymno, Crete, 74100
Greece

HOME PAGE: http://https://economics.soc.uoc.gr/en/staff/4551/17

Emilios C. Galariotis

Audencia Business School ( email )

8 Road Joneliere
BP 31222
Nantes Cedex 3, 44312
France

HOME PAGE: http://faculte-recherche.audencia.com/en/faculty/faculty-member-cvs/emilios-galariotis/

Christos Staikouras

Athens University of Economics and Business - Department of Accounting and Finance ( email )

76 Patission Street
Athens, 104 34
Greece
+30 210 8203 459 (Phone)

Here is the Coronavirus
related research on SSRN

Paper statistics

Downloads
129
Abstract Views
561
rank
228,946
PlumX Metrics