Spanish credit institutions: do efficiency and solvency support the first decisions on bank restructuring from a financial point of view 2008-2012? (original) (raw)
Related papers
Spanish Journal of Finance and Accounting / Revista Española de Financiación y Contabilidad, 2016
The literature analyzing the efficiency of financial institutions has evolved rapidly over the last twenty years. Most research has focused on the input side, analyzing either cost, input technical efficiency or input allocative efficiency, whereas comparatively fewer studies have examined the revenue side. However, both sides are relevant when evaluating banks' performance. This article explicitly explores how serious it may be to confine the analysis to one side of banks' activities only, comparing the efficiencies yielded by either minimizing costs or maximizing revenues. We focus on the Spanish banking sector, which is currently undergoing a profound process of change and restructuring. The application shows how severely biased the analysis is when only a partial efficiency measurement is conducted. It also shows the growing relevance of the issue since the beginning of the financial crisis.
This paper studies the determinants that have affected the solvency of Spanish credit institutions. Six hypotheses with data from the annual accounts of credit institutions that ranges from 2004 to 2011 are contrasted. Econometric panel data models are used. The results show that the dependence on wholesale financial markets, the NPLs and provisions for impairment, contribute negatively to the solvency. The increase in: portfolio of assets, real estate investments, leverage, staff costs and administrative and interest margin and other income, serve to strengthen solvency.
2015
Searching for greater inter efficiency has been used as a reason to modify the Spanish banking system since 2009. This paper aims to contribute to quantify the magnitude of efficiency, but not only the economic one, but also social and overall efficiency from 2000 to 2011. The case of Spain -compared to other banking systemsprovides unique information regarding the stakeholder governance banking literature because over the last century savings banks have become rooted in the Spanish culture. The results -confirmed by a two-stage frontiers analysis, a DEA and a model combined with bootstrapped testsindicate that Spanish savings banks are not less efficient globally than banks and are more efficient socially. Moreover, our results–with potentially important implicationsencourage the participation of stakeholders in banking systems and underline the importance of attaining long-term efficiency gains to support financial stability objectives. JEL classification: D21; G21; M14
Mergers between Spanish credit cooperatives as a mechanism to prevent insolvencies (1996-2016)
2019
The objective of this research is to determine if the mergers between Spanish Rural Savings Banks is the usual strategy of the management team to avoid a future insolvency. In this sense, within the scarce academic research on the insolvencies of credit cooperatives, the different authors agree that insolvency processes within the credit cooperative sector are not common. In fact, Porath (2006), Cabo et al (2010), Lima (2012) and Madera (2017) observe that merger processes between credit unions are more common, asking us whether these mergers are indeed a strategy to avoid situations of future insolvency. Both discriminant analysis and the estimation of logit model in its traditional version and the variation proposed by Shumway (2001), confirm that mergers of rural banks in Spain were motivated not only by business factors, but factors related to short-term sustainability played a decisive role and a strategy.
Efficiency in Spanish banking: A multistakeholder approach analysis
Journal of International Financial Markets, Institutions and Money, 2014
Searching for greater inter efficiency has been used as a reason to modify the Spanish banking system since 2009. This paper aims to contribute to quantify the magnitude of efficiency, but not only the economic one, but also social and overall efficiency from 2000 to 2011. The case of Spain -compared to other banking systemsprovides unique information regarding the stakeholder governance banking literature because over the last century savings banks have become rooted in the Spanish culture. The results -confirmed by a two-stage frontiers analysis, a DEA and a model combined with bootstrapped tests -indicate that Spanish savings banks are not less efficient globally than banks and are more efficient socially. Moreover, our results -with potentially important implicationsencourage the participation of stakeholders in banking systems and underline the importance of attaining long-term efficiency gains to support financial stability objectives.
A Resolution in the Spanish Banking Sector: The Case of Banco Popular Español
Zeszyty Naukowe Uniwersytetu Ekonomicznego w Krakowie, 2018
The restructuring of Banco Popular Español (BPE) through its takeover by Banco Santander provided a valuable example of the first resolution framework application, which allowed for the assessment of its effectiveness. However, similar crisis tools were also utilised in the Spanish banking sector in 2008-2013. Their analysis may provide a valuable contribution to the issue of selecting the most appropriate resolution tools for banks, which can be utilised by Spain and other EU countries when further restructuring their respective banking sectors or managing crises. The aim of this article is to evaluate the effectiveness of the BPE resolution. Additionally, other examples of the application of the "sale of business" tool from the Spanish banking crisis of 2008-2013 were assessed. The conclusions were then used to assess the possible application of similar tools at other banks in Spain and other European countries.
Bank Consolidation and Performance: The Argentine Experience
2004
The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate.
Prudential regulations, restructuring and competition: the case of the Argentine Banking Industry
Both authors are members of the Research Department of the 'Banco Central de la República Argentina'. We are extremely grateful to Marcelo Catena for his help and for enriching this paper with his comments. We are also grateful to the participants of seminars at the Banco Central de la República Argentina and the Universidad del CEMA for their useful comments to a previous version. The opinions expressed are those of the authors and do not represent those of the 'Banco Central de la República Argentina'. The remaining errors are those of the authors.