Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/212134 
Year of Publication: 
2009
Series/Report no.: 
Bank of Finland Research Discussion Papers No. 13/2009
Publisher: 
Bank of Finland, Helsinki
Abstract: 
In this study, we test whether regional growth in 11 European countries depends on financial development and suggest the use of cost- and profit-efficiency estimates as quality measures for financial institutions. Contrary to the usual quantitative proxies for financial development, the quality of financial institutions is measured in this study as the relative ability of banks to intermediate funds. An improvement in bank efficiency spurs five times more regional growth than does an identical increase in credit. More credit provided by efficient banks exerts an independent growth effect in addition to the direct quantity and quality channel effects.
Subjects: 
bank performance
regional growth
bank efficiency
Europe
JEL: 
G21
O16
O47
O52
Persistent Identifier of the first edition: 
ISBN: 
978-952-462-509-8
Document Type: 
Working Paper

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