Contractual Savings Institutions and Banks' Stability and Efficiency

Contractual Savings Institutions and Banks' Stability and Efficiency

The authors analyze the relationship between the development of contractual savings institutions and banks' efficiency, credit, and liquidity risks. They discuss the potential mechanisms through which the development of contractual savings ins...

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Bibliographic Details
Main Authors:	Impavido, Gregorio, Musalem, Alberto R., Tressel, Thierry
Format:	Policy Research Working Paper
Language:	English en_US
Published:	World Bank, Washington, DC 2014
Subjects:	ACCOUNTING STANDARDS ASYMMETRIC INFORMATION BALANCE SHEET BALANCE SHEETS BANK DEPOSITS BANK LENDING BANK LIABILITIES BANK LOANS BANK MONITORING BANK PROFITS BANK REGULATION BANK RUNS BANKING PANICS BANKING SECTOR BANKING SUPERVISION BANKING SYSTEM BANKING SYSTEMS BANKRUPTCY BANKS BOND MARKETS BONDS BOOK VALUE CAPITAL ALLOCATION CAPITAL FLOWS CAPITAL MARKETS CAPITALIZATION COMMERCIAL BANKS COMPARATIVE ADVANTAGE CONTRACTUAL SAVING CONTRACTUAL SAVINGS CONTRACTUAL SAVINGS INSTITUTIONS CORPORATE FINANCE CORPORATE GOVERNANCE COST OF CAPITAL COUNTRY COMPARISONS COVERAGE CREDIT RISK CREDIT RISKS DEBT DEPOSIT INSURANCE DEPOSITS ECONOMETRIC ANALYSIS ECONOMIC GROWTH ECONOMICS EMERGING MARKETS EQUITY INVESTMENTS EXTERNALITIES FINANCIAL ASSETS FINANCIAL CRISIS FINANCIAL INSTITUTIONS FINANCIAL INTERMEDIARIES FINANCIAL INTERMEDIATION FINANCIAL MARKETS FINANCIAL RISK FINANCIAL SECTOR FINANCIAL STABILITY FINANCIAL STRUCTURE FINANCIAL SYSTEMS FOREIGN ENTRY GDP GDP PER CAPITA IMPERFECT INFORMATION INCENTIVES TO SAVE INFLATION INFLATION RATE INFORMATION ACQUISITION INFORMATION DISCLOSURE INFORMATION DISCLOSURE REQUIREMENTS INSURANCE INSURANCE COMPANIES INSURANCE INDUSTRY INSURANCE PRODUCTS INTEREST INCOME INTEREST RATE INTEREST RATES LARGE SHAREHOLDERS LAWS LENDING BEHAVIOR LIBERALIZATION LIFE INSURANCE LIFE INSURANCE COMPANIES LIQUIDITY LOAN LOSS PROVISIONS LOAN MATURITY MARKET EQUILIBRIUM MARKET TRANSPARENCY MONETARY POLICY MORAL HAZARD NARROW BANKING NET INTEREST MARGIN OPPORTUNITY COST PENSION FUNDS POLITICAL ECONOMY PRIMARY MARKETS PROFIT RATE PROFITABILITY PROFITABILITY MEASURES REAL GDP REGRESSION ANALYSIS RISK DIVERSIFICATION RISK MANAGEMENT SAVINGS SAVINGS INSTRUMENTS SECURITIES STOCK MARKETS SYSTEMIC RISK TERM FINANCE TRANSPARENCY UNDERINSURANCE UNDERWRITING
Online Access:	http://documents.worldbank.org/curated/en/2001/12/1677832/contractual-savings-institutions-banks-stability-efficiency http://hdl.handle.net/10986/19339

Description
Summary:	The authors analyze the relationship between the development of contractual savings institutions and banks' efficiency, credit, and liquidity risks. They discuss the potential mechanisms through which the development of contractual savings institutions may affect the banking sector. They show that the development of contractual savings institutions has a significant impact on bank spreads and loan maturity. After controlling for banks' characteristics, macroeconomic factors, and more standard indicators of financial development, they show that the development of contractual savings institutions is associated with increased efficiency of the banking system and greater resilience to credit and liquidity risks.