Lending quality and contracts enforcement reforms-Reference-Cited by-同舟云学术

Lending quality and contracts enforcement reforms

Published:2023-04-15 Issue:1 Volume:30 Page:440-464
ISSN:1354-7798
Container-title:European Financial Management
language:en
Short-container-title:Euro Fin Management

Author:

D'Apice Vincenzo¹,Fiordelisi Franco²³,Puopolo Giovanni W.⁴^ORCID

Affiliation:

1. Center for Relationship Banking and Economics (CERBE) Rome Italy

2. Essex Business School Colchester UK

3. University of Rome III Rome Italy

4. University of Naples Federico II and CSEF Naples Italy

Abstract

AbstractWe investigate the causal relationship between the efficiency of country's judicial system and the quality of bank lending, using the contracts enforcement reforms implemented in four European countries as a quasi‐natural experiment. We find that strengthening contracts enforcement determines large, significant and persistent reductions in banks' nonperforming loans. Our results have important policy implications: they point at judicial efficiency as a critical determinant of the stability of the banking sector and its resilience to adverse shocks such as the recent Covid‐19 pandemic.

Publisher

Wiley

Subject

General Economics, Econometrics and Finance,Accounting

Link

https://onlinelibrary.wiley.com/doi/pdf/10.1111/eufm.12422

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