TY - JOUR
T1 - Political patronage in Ukrainian banking
AU - Baum, C.F.
AU - Caglayan, M.
AU - Schäfer, D.
AU - Talavera, Oleksandr
PY - 2008
Y1 - 2008
N2 - This paper empirically investigates the link between political patronage and bank performance for Ukraine during 2003Q3–2005Q2. We find significant differences between politically affiliated and non-affiliated banks. The data suggest that affiliated banks have significantly lower interest rate margins and increase their capitalization. Furthermore, we show that the level of activity of affiliated deputies in parliament has a positive (negative) impact on banks’ capitalization ratio (interest rate margin). Our findings imply, in line with the related literature, that political affiliation has important effects on banks’ behaviour.
AB - This paper empirically investigates the link between political patronage and bank performance for Ukraine during 2003Q3–2005Q2. We find significant differences between politically affiliated and non-affiliated banks. The data suggest that affiliated banks have significantly lower interest rate margins and increase their capitalization. Furthermore, we show that the level of activity of affiliated deputies in parliament has a positive (negative) impact on banks’ capitalization ratio (interest rate margin). Our findings imply, in line with the related literature, that political affiliation has important effects on banks’ behaviour.
UR - http://www.scopus.com/inward/record.url?eid=2-s2.0-45349100037&partnerID=MN8TOARS
U2 - 10.1111/j.1468-0351.2008.00331.x
DO - 10.1111/j.1468-0351.2008.00331.x
M3 - Article
SN - 0967-0750
VL - 16
SP - 537
EP - 557
JO - Economics of Transition
JF - Economics of Transition
IS - 3
ER -