Financial stability, competitiveness and banks' innovation capacity: Evidence from the Global Financial Crisis

Marta  Degl'Innocenti; Kevin Grant; Aleksandar Sevic; Nickolaos Tzeremes

doi:10.1016/j.irfa.2018.07.009

Financial stability, competitiveness and banks' innovation capacity: Evidence from the Global Financial Crisis

Marta Degl'Innocenti
, Kevin Grant
, Aleksandar Sevic
, Nickolaos Tzeremes

Research output: Contribution to journal › Article › peer-review

33 Citations (Scopus)

381 Downloads (Pure)

Abstract

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.

Original language	English
Pages (from-to)	35-46
Number of pages	12
Journal	International Review of Financial Analysis
Volume	59
Early online date	6 Jul 2018
DOIs	https://doi.org/10.1016/j.irfa.2018.07.009
Publication status	Published - Oct 2018

Keywords

Financial centres
Global Financial Crisis
Innovation capacity
Non-parametric frontier analysis

ASJC Scopus subject areas

Finance
Economics and Econometrics

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10.1016/j.irfa.2018.07.009Licence: Elsevier User Licence

Author Accepted ManuscriptAccepted author manuscript, 488 KBLicence: CC BY-NC-ND

Cite this

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title = "Financial stability, competitiveness and banks' innovation capacity: Evidence from the Global Financial Crisis",

abstract = "This paper provides nuanced evidence on the effect of competitiveness and financial stability on banks{\textquoteright} innovation-capacity (technological-change) levels during the Global Financial Crisis (GFC) in 2007{\textendash}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{\textquoteright} competitiveness, banks{\textquoteright} stability and innovation-capacity levels. This suggests that banks{\textquoteright} ability to increase stability alongside financial centres{\textquoteright} stability in a highly competitive environment acts as a protective measure against the GFC's negative effects.",

keywords = "Financial centres, Global Financial Crisis, Innovation capacity, Non-parametric frontier analysis",

author = "Marta Degl'Innocenti and Kevin Grant and Aleksandar Sevic and Nickolaos Tzeremes",

year = "2018",

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doi = "10.1016/j.irfa.2018.07.009",

language = "English",

volume = "59",

pages = "35--46",

journal = "International Review of Financial Analysis",

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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

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DO - 10.1016/j.irfa.2018.07.009

M3 - Article

SN - 1057-5219

VL - 59

SP - 35

EP - 46

JO - International Review of Financial Analysis

JF - International Review of Financial Analysis

ER -

Financial stability, competitiveness and banks' innovation capacity: Evidence from the Global Financial Crisis

Abstract

Keywords

ASJC Scopus subject areas

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