Don’t stand so close to me: the role of supervisory style in banking stability

Allbwn ymchwil: Cyfraniad at gyfnodolynErthygladolygiad gan gymheiriaid

Fersiynau electronig

Dangosydd eitem ddigidol (DOI)

  • Alessandro Carretta
    University of Rome, Italy
  • Vincenzo Farina
    University of Rome, Italy
  • Franco Fiordelisi
    University of Rome III, Faculty of Economics, Rome
  • Schwizer Paola
    University of Parma
  • Francesco Stentella Lopes
    University of Rome III, Faculty of Economics, Rome
With the establishment of an integrated Banking Union, the harmonization of supervisory styles (regulation being equal) plays a central role. Our paper addresses a central question: what supervisory culture has been demonstrated to be most effective at ensuring the stability of European banks? We identify six different supervisory cultures and observe to what extent the words used in public speeches by the deans of the national supervision authority reflect the national cultural values of the Hofstede framework (Hofstede et al., 2010). By analyzing a panel of banks operating in the EU-15 from 1999 and 2011, our paper provides empirical evidence that supervisory culture influences the stability of banks. Our results have important policy implications: our paper is the first to provide empirical evidence of heterogeneity in the supervision styles in Europe and its effect on banking stability.
Iaith wreiddiolSaesneg
Tudalennau (o-i)180-188
CyfnodolynJournal of Banking and Finance
Cyfrol52
Dyddiad ar-lein cynnar28 Medi 2014
Dynodwyr Gwrthrych Digidol (DOIs)
StatwsCyhoeddwyd - Maw 2015
Cyhoeddwyd yn allanolIe
Gweld graff cysylltiadau