Further Evidence on the Link between Finance and Growth : An International Analysis of Community Banking and Economic Performance

The authors contribute to both the finance-growth literature and the community banking literature by testing the effects of the relative health of community banks on economic growth, and investigating potential transmission mechanisms for these eff...

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Main Authors:	Berger, Allen N., Hasan, Iftekhar, Klapper, Leora F.
Format:	Policy Research Working Paper
Language:	English en_US
Published:	World Bank, Washington, DC 2014
Subjects:	ACCOUNTABILITY ACCOUNTING ACCOUNTING RECORDS ACTUAL COSTS ADVERSE CONSEQUENCES AFFILIATES AGENCY PROBLEMS AGRICULTURE AUTONOMY BALANCE SHEET BALANCE SHEETS BANK LENDING BANK REGULATION BANK SIZE BANKING INDUSTRY BANKING SERVICES BANKS BORROWING BUSINESS LICENSES CAPITAL MARKETS COLLATERAL COMMERCIAL BANKS COMMUNITY BANKS COMPARATIVE ADVANTAGES COMPETITIVENESS CONSUMERS CREDIT CULTURE CREDIT PRACTICES DECENTRALIZATION DEPOSITS DEREGULATION DEVELOPMENT BANKS DISECONOMIES EARNING ASSETS ECONOMIC CONDITIONS ECONOMIC GROWTH ECONOMIC PERFORMANCE EMERGING MARKETS EMPIRICAL ANALYSIS EMPLOYMENT ENDOGENOUS VARIABLES ENTREPRENEURSHIP EQUITY CAPITAL EQUITY MARKETS EXOGENOUS VARIABLES EXPORTS FEDERAL RESERVE SYSTEM FINANCIAL CRISES FINANCIAL INCENTIVES FINANCIAL INSTITUTIONS FINANCIAL RATIOS FINANCIAL REPORTING FINANCIAL STABILITY FINANCIAL SYSTEMS FOREIGN BANKS GDP GOVERNMENT GUARANTEES GOVERNMENT INTERVENTION GOVERNMENT SUBSIDIES GROSS DOMESTIC PRODUCT GROWTH POTENTIAL GROWTH RATE HOUSING INCOME STATEMENTS INEFFICIENCY INSURANCE INTEREST RATES INTERNATIONAL BANKING INTERSTATE BANKING LENDING PRACTICES LIQUIDITY MANDATES MARGINAL BENEFITS MARKET VALUE MICROFINANCE MONETARY POLICY NONBANK FINANCIAL INSTITUTIONS PORTFOLIOS POSITIVE EFFECTS PRIVATE BANKS PROBLEM LOANS PRODUCTIVITY PROFIT FUNCTIONS PROFITABILITY PROPRIETARY INFORMATION PUBLIC DEBT RELATIONSHIP LENDING SECURITIES SHAREHOLDERS SMALL BANKS SMALL BUSINESS STATE BANKS STATE OWNERSHIP STOCK EXCHANGES SUBSIDIARIES SUBSIDIARY TIME SERIES TOTAL COSTS TRANSMISSION MECHANISM TRANSPARENCY VENTURE CAPITAL FINANCIAL SERVICES BANKING SYSTEMS GROWTH PATTERNS COMMUNITY DEVELOPMENT BANKING DATA TRANSMISSION MARKET SHARE SMALL & MEDIUM SCALE ENTERPRISES FINANCING OPTIONS BANK CREDIT FOREIGN OWNERSHIP STATE-OWNED BANKS VENTURE CAPITAL FINANCIAL SERVICES
Online Access:	http://documents.worldbank.org/curated/en/2003/08/2483262/further-evidence-link-between-finance-growth-international-analysis-community-banking-economic-performance http://hdl.handle.net/10986/18128

id	okr-10986-18128
recordtype	oai_dc
spelling	okr-10986-181282021-04-23T14:03:41Z Further Evidence on the Link between Finance and Growth : An International Analysis of Community Banking and Economic Performance Berger, Allen N. Hasan, Iftekhar Klapper, Leora F. ACCOUNTABILITY ACCOUNTING ACCOUNTING RECORDS ACTUAL COSTS ADVERSE CONSEQUENCES AFFILIATES AGENCY PROBLEMS AGRICULTURE AUTONOMY BALANCE SHEET BALANCE SHEETS BANK LENDING BANK REGULATION BANK SIZE BANKING INDUSTRY BANKING SERVICES BANKS BORROWING BUSINESS LICENSES CAPITAL MARKETS COLLATERAL COMMERCIAL BANKS COMMUNITY BANKS COMPARATIVE ADVANTAGES COMPETITIVENESS CONSUMERS CREDIT CULTURE CREDIT PRACTICES DECENTRALIZATION DEPOSITS DEREGULATION DEVELOPMENT BANKS DISECONOMIES EARNING ASSETS ECONOMIC CONDITIONS ECONOMIC GROWTH ECONOMIC PERFORMANCE EMERGING MARKETS EMPIRICAL ANALYSIS EMPLOYMENT ENDOGENOUS VARIABLES ENTREPRENEURSHIP EQUITY CAPITAL EQUITY MARKETS EXOGENOUS VARIABLES EXPORTS FEDERAL RESERVE SYSTEM FINANCIAL CRISES FINANCIAL INCENTIVES FINANCIAL INSTITUTIONS FINANCIAL RATIOS FINANCIAL REPORTING FINANCIAL STABILITY FINANCIAL SYSTEMS FOREIGN BANKS GDP GOVERNMENT GUARANTEES GOVERNMENT INTERVENTION GOVERNMENT SUBSIDIES GROSS DOMESTIC PRODUCT GROWTH POTENTIAL GROWTH RATE HOUSING INCOME STATEMENTS INEFFICIENCY INSURANCE INTEREST RATES INTERNATIONAL BANKING INTERSTATE BANKING LENDING PRACTICES LIQUIDITY MANDATES MARGINAL BENEFITS MARKET VALUE MICROFINANCE MONETARY POLICY NONBANK FINANCIAL INSTITUTIONS PORTFOLIOS POSITIVE EFFECTS PRIVATE BANKS PROBLEM LOANS PRODUCTIVITY PROFIT FUNCTIONS PROFITABILITY PROPRIETARY INFORMATION PUBLIC DEBT RELATIONSHIP LENDING SECURITIES SHAREHOLDERS SMALL BANKS SMALL BUSINESS STATE BANKS STATE OWNERSHIP STOCK EXCHANGES SUBSIDIARIES SUBSIDIARY TIME SERIES TOTAL COSTS TRANSMISSION MECHANISM TRANSPARENCY VENTURE CAPITAL FINANCIAL SERVICES BANKING SYSTEMS GROWTH PATTERNS COMMUNITY DEVELOPMENT BANKING ECONOMIC GROWTH DATA TRANSMISSION MARKET SHARE PRIVATE BANKS SMALL & MEDIUM SCALE ENTERPRISES FINANCING OPTIONS BANK CREDIT FOREIGN OWNERSHIP STATE-OWNED BANKS VENTURE CAPITAL FINANCIAL SERVICES The authors contribute to both the finance-growth literature and the community banking literature by testing the effects of the relative health of community banks on economic growth, and investigating potential transmission mechanisms for these effects using data from 1993-2000 on 49 nations. Data from both industrial and developing nations suggest that greater market shares and efficiency ranks of small, private, domestically-owned banks are associated with better economic performance, and that the marginal benefits of higher shares are greater when the banks are more efficient. Only mixed support is found for hypothesized transmission mechanisms through improved financing for small and medium enterprises or greater overall bank credit flows. Data from developing nations are also consistent with favorable economic effects of foreign-owned banks, but unfavorable effects from state-owned banks. 2014-05-01T18:38:50Z 2014-05-01T18:38:50Z 2003-08 http://documents.worldbank.org/curated/en/2003/08/2483262/further-evidence-link-between-finance-growth-international-analysis-community-banking-economic-performance http://hdl.handle.net/10986/18128 English en_US Policy Research Working Paper;No. 3105 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank, Washington, DC Publications & Research :: Policy Research Working Paper Publications & Research
repository_type	Digital Repository
institution_category	Foreign Institution
institution	Digital Repositories
building	World Bank Open Knowledge Repository
collection	World Bank
language	English en_US
topic	ACCOUNTABILITY ACCOUNTING ACCOUNTING RECORDS ACTUAL COSTS ADVERSE CONSEQUENCES AFFILIATES AGENCY PROBLEMS AGRICULTURE AUTONOMY BALANCE SHEET BALANCE SHEETS BANK LENDING BANK REGULATION BANK SIZE BANKING INDUSTRY BANKING SERVICES BANKS BORROWING BUSINESS LICENSES CAPITAL MARKETS COLLATERAL COMMERCIAL BANKS COMMUNITY BANKS COMPARATIVE ADVANTAGES COMPETITIVENESS CONSUMERS CREDIT CULTURE CREDIT PRACTICES DECENTRALIZATION DEPOSITS DEREGULATION DEVELOPMENT BANKS DISECONOMIES EARNING ASSETS ECONOMIC CONDITIONS ECONOMIC GROWTH ECONOMIC PERFORMANCE EMERGING MARKETS EMPIRICAL ANALYSIS EMPLOYMENT ENDOGENOUS VARIABLES ENTREPRENEURSHIP EQUITY CAPITAL EQUITY MARKETS EXOGENOUS VARIABLES EXPORTS FEDERAL RESERVE SYSTEM FINANCIAL CRISES FINANCIAL INCENTIVES FINANCIAL INSTITUTIONS FINANCIAL RATIOS FINANCIAL REPORTING FINANCIAL STABILITY FINANCIAL SYSTEMS FOREIGN BANKS GDP GOVERNMENT GUARANTEES GOVERNMENT INTERVENTION GOVERNMENT SUBSIDIES GROSS DOMESTIC PRODUCT GROWTH POTENTIAL GROWTH RATE HOUSING INCOME STATEMENTS INEFFICIENCY INSURANCE INTEREST RATES INTERNATIONAL BANKING INTERSTATE BANKING LENDING PRACTICES LIQUIDITY MANDATES MARGINAL BENEFITS MARKET VALUE MICROFINANCE MONETARY POLICY NONBANK FINANCIAL INSTITUTIONS PORTFOLIOS POSITIVE EFFECTS PRIVATE BANKS PROBLEM LOANS PRODUCTIVITY PROFIT FUNCTIONS PROFITABILITY PROPRIETARY INFORMATION PUBLIC DEBT RELATIONSHIP LENDING SECURITIES SHAREHOLDERS SMALL BANKS SMALL BUSINESS STATE BANKS STATE OWNERSHIP STOCK EXCHANGES SUBSIDIARIES SUBSIDIARY TIME SERIES TOTAL COSTS TRANSMISSION MECHANISM TRANSPARENCY VENTURE CAPITAL FINANCIAL SERVICES BANKING SYSTEMS GROWTH PATTERNS COMMUNITY DEVELOPMENT BANKING ECONOMIC GROWTH DATA TRANSMISSION MARKET SHARE PRIVATE BANKS SMALL & MEDIUM SCALE ENTERPRISES FINANCING OPTIONS BANK CREDIT FOREIGN OWNERSHIP STATE-OWNED BANKS VENTURE CAPITAL FINANCIAL SERVICES
spellingShingle	ACCOUNTABILITY ACCOUNTING ACCOUNTING RECORDS ACTUAL COSTS ADVERSE CONSEQUENCES AFFILIATES AGENCY PROBLEMS AGRICULTURE AUTONOMY BALANCE SHEET BALANCE SHEETS BANK LENDING BANK REGULATION BANK SIZE BANKING INDUSTRY BANKING SERVICES BANKS BORROWING BUSINESS LICENSES CAPITAL MARKETS COLLATERAL COMMERCIAL BANKS COMMUNITY BANKS COMPARATIVE ADVANTAGES COMPETITIVENESS CONSUMERS CREDIT CULTURE CREDIT PRACTICES DECENTRALIZATION DEPOSITS DEREGULATION DEVELOPMENT BANKS DISECONOMIES EARNING ASSETS ECONOMIC CONDITIONS ECONOMIC GROWTH ECONOMIC PERFORMANCE EMERGING MARKETS EMPIRICAL ANALYSIS EMPLOYMENT ENDOGENOUS VARIABLES ENTREPRENEURSHIP EQUITY CAPITAL EQUITY MARKETS EXOGENOUS VARIABLES EXPORTS FEDERAL RESERVE SYSTEM FINANCIAL CRISES FINANCIAL INCENTIVES FINANCIAL INSTITUTIONS FINANCIAL RATIOS FINANCIAL REPORTING FINANCIAL STABILITY FINANCIAL SYSTEMS FOREIGN BANKS GDP GOVERNMENT GUARANTEES GOVERNMENT INTERVENTION GOVERNMENT SUBSIDIES GROSS DOMESTIC PRODUCT GROWTH POTENTIAL GROWTH RATE HOUSING INCOME STATEMENTS INEFFICIENCY INSURANCE INTEREST RATES INTERNATIONAL BANKING INTERSTATE BANKING LENDING PRACTICES LIQUIDITY MANDATES MARGINAL BENEFITS MARKET VALUE MICROFINANCE MONETARY POLICY NONBANK FINANCIAL INSTITUTIONS PORTFOLIOS POSITIVE EFFECTS PRIVATE BANKS PROBLEM LOANS PRODUCTIVITY PROFIT FUNCTIONS PROFITABILITY PROPRIETARY INFORMATION PUBLIC DEBT RELATIONSHIP LENDING SECURITIES SHAREHOLDERS SMALL BANKS SMALL BUSINESS STATE BANKS STATE OWNERSHIP STOCK EXCHANGES SUBSIDIARIES SUBSIDIARY TIME SERIES TOTAL COSTS TRANSMISSION MECHANISM TRANSPARENCY VENTURE CAPITAL FINANCIAL SERVICES BANKING SYSTEMS GROWTH PATTERNS COMMUNITY DEVELOPMENT BANKING ECONOMIC GROWTH DATA TRANSMISSION MARKET SHARE PRIVATE BANKS SMALL & MEDIUM SCALE ENTERPRISES FINANCING OPTIONS BANK CREDIT FOREIGN OWNERSHIP STATE-OWNED BANKS VENTURE CAPITAL FINANCIAL SERVICES Berger, Allen N. Hasan, Iftekhar Klapper, Leora F. Further Evidence on the Link between Finance and Growth : An International Analysis of Community Banking and Economic Performance
relation	Policy Research Working Paper;No. 3105
description	The authors contribute to both the finance-growth literature and the community banking literature by testing the effects of the relative health of community banks on economic growth, and investigating potential transmission mechanisms for these effects using data from 1993-2000 on 49 nations. Data from both industrial and developing nations suggest that greater market shares and efficiency ranks of small, private, domestically-owned banks are associated with better economic performance, and that the marginal benefits of higher shares are greater when the banks are more efficient. Only mixed support is found for hypothesized transmission mechanisms through improved financing for small and medium enterprises or greater overall bank credit flows. Data from developing nations are also consistent with favorable economic effects of foreign-owned banks, but unfavorable effects from state-owned banks.
format	Publications & Research :: Policy Research Working Paper
author	Berger, Allen N. Hasan, Iftekhar Klapper, Leora F.
author_facet	Berger, Allen N. Hasan, Iftekhar Klapper, Leora F.
author_sort	Berger, Allen N.
title	Further Evidence on the Link between Finance and Growth : An International Analysis of Community Banking and Economic Performance
title_short	Further Evidence on the Link between Finance and Growth : An International Analysis of Community Banking and Economic Performance
title_full	Further Evidence on the Link between Finance and Growth : An International Analysis of Community Banking and Economic Performance
title_fullStr	Further Evidence on the Link between Finance and Growth : An International Analysis of Community Banking and Economic Performance
title_full_unstemmed	Further Evidence on the Link between Finance and Growth : An International Analysis of Community Banking and Economic Performance
title_sort	further evidence on the link between finance and growth : an international analysis of community banking and economic performance
publisher	World Bank, Washington, DC
publishDate	2014
url	http://documents.worldbank.org/curated/en/2003/08/2483262/further-evidence-link-between-finance-growth-international-analysis-community-banking-economic-performance http://hdl.handle.net/10986/18128
_version_	1764438929491099648

Further Evidence on the Link between Finance and Growth : An International Analysis of Community Banking and Economic Performance

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