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AuthorBen Ammar, Mouldi
AuthorMolyneux, Philip
AuthorAl-Fayoumi, Nedal
Available date2024-01-21T08:57:52Z
Publication Date2024-01-31
Publication NameInternational Review of Economics & Finance
Identifierhttp://dx.doi.org/10.1016/j.iref.2023.07.080
CitationAbuzayed, B., Ammar, M. B., Molyneux, P., & Al-Fayoumi, N. (2024). Corruption, lending and bank performance. International Review of Economics & Finance, 89, 802-830.‏
ISSN10590560
URIhttps://www.sciencedirect.com/science/article/pii/S1059056023002915
URIhttp://hdl.handle.net/10576/50973
AbstractThis paper uses a sample of 7235 banks from 160 countries between 2000 and 2016 to investigate the link between corruption, lending and bank performance. It considers both country- and bank-level corruption. The study finds that while corruption increases bank lending, it has an adverse impact on bank profits and risks (credit, solvency and distance to default). Corporate lending is found to be most influenced by corruption. Bank-level corruption influences bank performance in both developed and developing countries whereas country-level corruption has a lesser effect on lending in developing countries. The study also finds that greater bank competition, market concentration and improved regulatory environments reduce the effect of corruption on bank lending and performance. Policy makers should focus on enhancing regulatory rules and institutions in order to deal with the adverse impact of corruption on bank performance.
Languageen
PublisherElsevier Inc.
SubjectCorruption
Bank lending corruption
Loan growth
Bank performance
TitleCorruption, lending and bank performance
TypeArticle
Pagination802-830
Volume Number89
dc.accessType Open Access


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