PL EN


Journal
2014 | 3(56) | 7-49
Article title

Indeksy dyscypliny rynkowej : propozycja nowego podejścia do pomiaru siły dyscypliny rynkowej w bankowości

Content
Title variants
EN
Market Discipline Indexes : a Proposed New Approach to Measuring the Strenght o Market Discipline in Banking
Languages of publication
PL
Abstracts
PL
W niniejszym artykule zaproponowaliśmy nowy sposób mierzenia siły dyscypliny rynkowej w bankowości. W miejsce tradycyjnego badania wrażliwości kosztu i dostępności kapitału na czynniki fundamentalne lub niepowtarzalne zdarzenia niosące informację o kondycji banków postulujemy użycie indeksów dyscypliny rynkowej. Ich podstawową zaletą jest to, że wyrażają one natężenie rynkowych procesów monitorowania w danym kraju i okresie za pomocą pojedynczej liczby. Ułatwia to dokonywanie porównań zarówno w czasie, jak i przestrzeni (pomiędzy krajami lub ich grupami). (fragment tekstu)
EN
This article presents a new method designed to measure the strength of market discipline in banking using synthetic indexes. Their main advantage - as compared to traditional methods of market discipline analysis - is the ease of comparisons in time and space. Apart from that, they enable us to establish the determinants of the proper functioning of market discipline. Based on banks' financial statements we calculated and presented the values of the indexes for almost 80 countries. The indexes, despite differences in their construction, classify countries in a similar way with respect to the exercised strength of market discipline through the cost of capital and its availability. In an example we use the indexes to analyze determinants of market discipline and show that the influence of widely understood education is conditional on safety net arrangements and a country's wealth.
Journal
Year
Issue
Pages
7-49
Physical description
Contributors
  • Akademia Leona Koźmińskiego
  • Polska Akademia Nauk
  • Akademia Leona Koźmińskiego
References
  • Allen L., Jagtiani J., Moser J.T., Further Evidence on the Information Content of Bank Examinations Ratings: A Study of BHC-to-FHC Conversion Applications, "Journal of Financial Services Research", Vol. 20, No. 2-3, 2001.
  • Balasubramnian B., Cyree K.B., Has market discipline on banks improved after the Dodd-Franck Act, "Journal of Banking and Finance", Vol. 41, 2014.
  • Barajas A., Steiner R., Depositor behaviour and market discipline in Colombia, Working Paper WP/00/214, International Monetary Fund, 2000.
  • Billett M.T., Garfinkel J.A., O'Neal E.S., The cost of market versus regulatory discipline in banking, "Journal of Financial Economics", Vol. 48, 1998.
  • Board of Governors of the Federal Reserve System, The Feasibility and Desirability of Mandatory Subordinated Debt, United States Department of Treasury, December 2000.
  • Brewer III E., Mondschean T.H., An empirical test of the incentive effects of deposit insurance. The case of junk bonds at savings and loan associations, "Journal of Money, Credit, and Banking", Vol. 26, 1994.
  • Cargill T.F., CAMEL ratings and the CD market, "Journal of Financial Services Research", Vol. 3, 1989.
  • Demirgüc-Kunt A., Huizinga H., Market discipline and deposit insurance, "Journal of Monetary Economics", Vol. 51, 2004.
  • Demirgüc-Kunt A., Karacaovali B., Laeven L., Deposit Insurance around the World: A Comprehensive Database, World Bank Policy Research Working Paper 3628, June 2005.
  • Ellis D., Flannery M., Does the debt market assess large banks' risk? Time series evidence from money center CDs, "Journal of Monetary Economics", Vol. 30, 1992.
  • Flannery M., Rangan K., What caused the bank capital build-up of the 1990s?, "Review of Finance", Vol. 12, 2008.
  • Fonseca A.R., Gonzalez F., How bank capital vary across countries: the influence of cost of deposits, market power and bank regulation, "Journal of Banking and Finance", Vol. 34, 2010.
  • Gilbert R.A., Vaughan M.D., Do Depositors Care about Enforcement Actions?, "Journal of Economics and Business", Vol. 53, 2001.
  • Goldberg L., Hudgins S., Depositor discipline and changing strategies for regulating thrift institutions, "Journal of Financial Economics", Vol. 63, 2002.
  • Gropp R., Vesala J., Deposit Insurance and Market Monitoring, European Central Bank Working Paper No. 302, February 2004.
  • Hadad M.D., Agusman A., Monroe G.S., Gasbarro D., Zumwalt J.K., Market discipline, financial crisis and regulatory changes: evidence from Indonesian banks, "Journal of Banking and Finance", Vol. 35, 2011.
  • Hannan T., Hanweck G.A., Bank insolvency risk and the market for large certificates of deposit, "Journal of Money, Credit and Banking", Vol. 20, 1998.
  • Hasan I., Jackowicz K., Kowalewski O., Kozłowski Ł., Market Discipline during Crisis: Evidence from Bank Depositors in Transition Countries, "Journal of Banking and Finance", Vol. 37, 2013.
  • Hess K., Feng G., Is there market discipline for New Zealand non-bank financial institutions?, "Journal of International Financial Markets, Institutions and Money", Vol. 17, 2007.
  • Hosono K., Iwaki H., Tsuru K., Bank Regulation and Market Discipline around the World, RIETI, Discussion Paper Series 04-E-031, October 2004.
  • Jackowicz K., Dyscyplina rynkowa w bankowości. Rodzaje i możliwości zastosowania, Wydawnictwo WSPiZ im. L. Koźmińskiego, Warszawa 2004.
  • Jackowicz K., Nowozelandzki eksperyment z dyscypliną rynkową w bankowości, "Bank i Kredyt", luty 2002.
  • Jackowicz K., Trzeci filar Nowej Umowy Kapitałowej - prezentacja i ocena, "Bezpieczny Bank", 3(28), 2005.
  • Jagtiani J., Lemieux C., Market discipline prior to bank failure, "Journal of Economics and Business", Vol. 25, 2001.
  • Jordan J.S., Depositor discipline at failing banks, "New England Economic Review", Federal Reserve Bank of Boston, March/April, 2000.
  • Jordan J.S., Peek J., Rosengren E.S., The Market Reaction to the Disclosure of Supervisory Actions: Implications for Bank Transparency, "Journal of Financial Intermediation", Vol. 9, 2000.
  • Kouassi T., Disstinguin I., Tarazi A., Bank Deposit Insurance, Moral Hazard and Market Discipline: Evidence form Central and Eastern Europe, http://www.dx.doi. org/10.2139/ssrn.1830265, 2011.
  • Kutner G.W, CD market response to Continental Illinois' liquidity crisis and its subsequent bailout, "The Mid-Atlantic Journal of Business", Vol. 28, 1992.
  • Maechler A.M., McDill K., Dynamic Depositor Discipline in US Banks, "Journal of Banking and Finance", Vol. 30, 2006.
  • Martinez Peria M.S., Schmukler S.L., Do depositors punish banks for bad behavior?, "Journal of Finance", Vol. 56, 2001.
  • Nier E., Baumann U., Market discipline, disclosure and moral hazard in banking, "Journal of Financial Intermediation", Vol. 15, 2006.
  • Park S., Peristiani S., Market discipline by thrift depositors, "Journal of Money, Credit, and Banking", Vol. 30, 1998.
  • Prean N., Stix H., The effect of raising deposit insurance coverage in times of financial crisis - Evidence from Croatian microdata, "Economic Systems", Vol. 35, 2011.
  • Shimizu K., Is the information produced in the stock market useful for depositors?, "Finance Research Letters", Vol. 6, 2009.
  • Uchida H., Satake M., Market discipline and bank efficiency, "Journal of International Financial Markets, Institutions and Money", Vol. 19, 2009.
Document Type
Publication order reference
Identifiers
YADDA identifier
bwmeta1.element.desklight-743b5d76-b1dd-4a46-ac8d-f84dd1f6e439
JavaScript is turned off in your web browser. Turn it on to take full advantage of this site, then refresh the page.