Does investor sentiment affect bank stability? International evidence from lending behavior
Fecha
2021Versión
Acceso abierto / Sarbide irekia
Tipo
Artículo / Artikulua
Versión
Versión aceptada / Onetsi den bertsioa
Identificador del proyecto
AEI/Plan Estatal de Investigación Científica y Técnica y de Innovación 2017-2020/PID2019-108503RB-I00/ES/
AEI/Plan Estatal de Investigación Científica y Técnica y de Innovación 2017-2020/PID2019-104304GB-I00/ES/
AEI/Plan Estatal de Investigación Científica y Técnica y de Innovación 2013-2016/ECO2017-85356-P/ES/
Impacto
|
10.1016/j.jimonfin.2020.102351
Resumen
We study the impact of investor sentiment on bank credit and how changes in lending may affect bank stability. We analyze a sample of 2,673 banks from 127 developed and developing countries during the 1997–2016 period. Our results indicate that periods of high investor sentiment positively affect bank lending and encourage bank risk-taking through the increase in the amount of loans granted which ...
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We study the impact of investor sentiment on bank credit and how changes in lending may affect bank stability. We analyze a sample of 2,673 banks from 127 developed and developing countries during the 1997–2016 period. Our results indicate that periods of high investor sentiment positively affect bank lending and encourage bank risk-taking through the increase in the amount of loans granted which, in fact, reduces bank stability. We find that the impact of investor sentiment on bank stability through changes in growth in bank loans is less negative in countries where creditor rights protection is greater, in terms of both collateral and bankruptcy. During systemic banking crises, the negative effect on bank stability was weaker since any increase in bank credit supply provoked by investor sentiment was counteracted by the crisis. [--]
Materias
Bank credit,
Bank stability,
Creditor protection,
Investor sentiment,
Systemic banking crises
Editor
Elsevier
Publicado en
Journal of International Money and Finance 113 (2021) 102351
Departamento
Universidad Pública de Navarra/Nafarroako Unibertsitate Publikoa. Institute for Advanced Research in Business and Economics - INARBE /
Universidad Pública de Navarra. Departamento de Gestión de Empresas /
Nafarroako Unibertsitate Publikoa. Enpresen Kudeaketa Saila
Versión del editor
Entidades Financiadoras
Elena Cubillas acknowledges financial support from the Spanish Ministry of Science and Innovation (Proyect PID2019-108503RB-I00). Elena Ferrer acknowledges financial support from the Spanish Ministry of Science and Innovation (Proyect PID2019-104304GB-I00/AEI/10.13039/501100011033). Nuria Suárez acknowledges financial support from the Spanish Ministry of Economy and Competitiveness (Project ECO2017-85356-P).