Financial Structure and Bank Profitability Asl 1
نویسنده
چکیده
Countries differ in the extent to which their financial systems are bank-based or market-based. This paper presents evidence on the impact of financial development and structure on bank performance using bank-level data for a large number of developed and developing countries. For countries that have underdeveloped financial systems, we show that a move towards a more developed financial system reduces bank profitability and margins. Controlling for both bank and market development, financial structure per se does not have an independent effect on bank performance.
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