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Market Discipline and the Russian Interbank Market
Bank of Finland Institute for Economies in Transition
,
2013.
No. 29/2013.
Irina Andrievskaya, Semenova M.
The interbank market plays an important role in the overall function of the financial system. The efficiency of the interbank market, in turn, depends largely on its inherent disciplining mechanisms. This paper investigates the discipline mechanisms of Russia’s interbank market, testing the hypothesis that market discipline in Russia was strong enough to constrain excessive risk-taking by participating banks before, during, and after the 2008–2009 financial crisis. The existence of quantity-based market discipline is investigated using Heckman’s sample selection model and the efficiency of market discipline is studied with a panel data model. Our approach detects market discipline only during the financial crisis, not before or after. Even during the crisis, its efficiency in curbing bank risk-taking was rather low.
Keywords: Russian banksроссийские банкиmarket disciplineрыночная дисциплинаinterbank marketrisk-takingрынок МБК
Publication based on the results of:
Semenova M., Andrievskaya I. K., Eastern European Economics 2015 Vol. 53 No. 2 P. 69-98
The efficiency of the interbank market depends largely on its inherent disciplining mechanisms. This paper investigates the discipline mechanisms of Russia’s interbank market, testing the hypothesis that market discipline in Russia was strong enough to constrain excessive risk-taking by participating banks before, during, and after the 2008–2009 financial crisis. The existence and efficiency of quantity-based ...
Added: July 16, 2015
Tovar-García E. D., Latin American Economic Review 2014 Vol. 23 No. 6 P. 1-33
This paper studies the mechanisms of market discipline in the Mexican deposit market. It tests the hypothesis that low-quality banks pay higher interest rates on deposits, receive fewer deposits, and shift their deposit agreements from long to short term. This hypothesis was assessed with positive evidence in Mexico during the period 1991–1996, but was not ...
Added: April 14, 2014
Tovar-García E. D., Cuadernos de Economía: Spanish Journal of Economics and Finance 2012 Vol. 35 No. 99 P. 172-181
This paper studies the asset side market discipline effect in Mexico, whether borrowers pay higher interest rates (price‑based mechanism) to high‑quality banks, and consequently, whether borrowers discipline their banks. Borrowers continuously require credit and they choose large banks because their lending activity is trustworthy (a refinancing‑solvency motive). In addition, borrowers prefer banks with lower loan ...
Added: May 30, 2013
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Added: August 5, 2015
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The banking literature points out that, borrowers can discipline banks, because they are willing to pay a higher interest rate to highquality banks. Borrower continuously need credit, which is better to require in highquality banks, with higher capital/actives ratios, because these banks are solvents and exert adequately corporate governance. With a discriminant analysis, we found ...
Added: January 23, 2014
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The binary and multinomial logit models are applied for prediction of the Russian banks defaults (license withdrawals) using data from bank balance sheets and macroeconomic indicators. Significantly different models correspond to the two main grounds for license withdrawal: financial insolvency and money laundering. Analysis of data for the period 2005.2–2008.4 for accurate prediction of a ...
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Schoors K., Semenova M., Zubanov A., / National Research University Higher School of Economics. Series WP BRP "Financial Economics". 2016. No. 58/FE/2016.
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Semenova M., Shapkin A., / Высшая школа экономики. Series FE "Financial Economics". 2016. No. 57/FE/2016.
Market discipline in the personal deposit market is of great importance for regulators. In developing economies, which rely much and are dependent on the dollar and euro, changes in the currency structure of the deposits may be strategic and work as an additional disciplining mechanism. Our study sheds light on this mechanism of currency shifts ...
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Semenova M., Andrievskaya I. K., / Высшая школа экономики. Series FE "Financial Economics". 2012. No. 07.
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Added: June 30, 2016
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