The Effects of Regional Banks on Economic Resilience during the COVID-19 Pandemic and the Global Financial Crisis A Cross-Country Comparison of the European Countries
An economy’s ability to resist adverse shocks, such as an economic recession or natural disaster, is associated with its financial system structure due to different countercyclical funding capabilities. This paper uses a novel database of bank headquarter locations in a cross-country comparison to investigate whether a decentralised geographical structure cushioned economic shocks during the COVID-19 pandemic and the global financial crisis (GFC). Findings suggest that the impacts of de-centralisation differ between the two crises: while a greater spread of regional banks was associat-ed with economic resilience during the GFC, countries with more centralised banking systems per-formed better in the first year of the pandemic. Future studies of pandemic recovery paths will show if regional banks have lost their ability for countercyclical funding, or if this non-financial cri-sis has rendered financial structure less important
Year of publication: |
[2022]
|
---|---|
Authors: | Flögel, Franz ; Hejnová, Tereza |
Publisher: |
[S.l.] : SSRN |
Subject: | Coronavirus | Finanzkrise | Financial crisis | EU-Staaten | EU countries | Wirkungsanalyse | Impact assessment | Vergleich | Comparison |
Saved in:
freely available
Extent: | 1 Online-Ressource (27 p) |
---|---|
Type of publication: | Book / Working Paper |
Language: | English |
Notes: | Nach Informationen von SSRN wurde die ursprüngliche Fassung des Dokuments December 31, 2021 erstellt |
Other identifiers: | 10.2139/ssrn.4001763 [DOI] |
Classification: | G21 - Banks; Other Depository Institutions; Mortgages ; D82 - Asymmetric and Private Information ; O47 - Measurement of Economic Growth; Aggregate Productivity ; R58 - Regional Development Policy ; h12 |
Source: | ECONIS - Online Catalogue of the ZBW |
Persistent link: https://www.econbiz.de/10013309311