TY - JOUR
T1 - Financial stability, competitiveness and banks' innovation capacity
T2 - Evidence from the Global Financial Crisis
AU - Degl'Innocenti, Marta
AU - Grant, Kevin
AU - Sevic, Aleksandar
AU - Tzeremes, Nickolaos
PY - 2018/10
Y1 - 2018/10
N2 - This paper provides nuanced evidence on the effect of competitiveness and financial stability on banks’ innovation-capacity (technological-change) levels during the Global Financial Crisis (GFC) in 2007–2008. We applied contemporary developments in non-parametric frontier analysis, employing a new index, the Global Financial Centres Index, to measure the business competitiveness of 45 financial centres. Our findings indicated a nonlinear and positive relationship between financial centres’ competitiveness, banks’ stability and innovation-capacity levels. This suggests that banks’ ability to increase stability alongside financial centres’ stability in a highly competitive environment acts as a protective measure against the GFC's negative effects.
AB - This paper provides nuanced evidence on the effect of competitiveness and financial stability on banks’ innovation-capacity (technological-change) levels during the Global Financial Crisis (GFC) in 2007–2008. We applied contemporary developments in non-parametric frontier analysis, employing a new index, the Global Financial Centres Index, to measure the business competitiveness of 45 financial centres. Our findings indicated a nonlinear and positive relationship between financial centres’ competitiveness, banks’ stability and innovation-capacity levels. This suggests that banks’ ability to increase stability alongside financial centres’ stability in a highly competitive environment acts as a protective measure against the GFC's negative effects.
KW - Financial centres
KW - Global Financial Crisis
KW - Innovation capacity
KW - Non-parametric frontier analysis
UR - http://www.scopus.com/inward/record.url?scp=85049615259&partnerID=8YFLogxK
U2 - 10.1016/j.irfa.2018.07.009
DO - 10.1016/j.irfa.2018.07.009
M3 - Article
VL - 59
SP - 35
EP - 46
JO - International Review of Financial Analysis
JF - International Review of Financial Analysis
SN - 1057-5219
ER -