Financial sector regulation, bank franchise values and savings mobilization

Laurenceson, J. S. (2007) Financial sector regulation, bank franchise values and savings mobilization. Applied Economics, 39 4-6: 519-525. doi:10.1080/00036840500438905

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Author Laurenceson, J. S.
Title Financial sector regulation, bank franchise values and savings mobilization
Journal name Applied Economics   Check publisher's open access policy
ISSN 0003-6846
Publication date 2007
Sub-type Article (original research)
DOI 10.1080/00036840500438905
Volume 39
Issue 4-6
Start page 519
End page 525
Total pages 7
Editor L. Sarno
M. P. Taylor
Place of publication Abingdon
Publisher Routledge Journals, Taylor & Francis Ltd
Collection year 2008
Language eng
Subject C1
1499 Other Economics
1402 Applied Economics
Abstract Empirical studies show that financial development exhibits a positive relationship with economic growth and the extent of poverty alleviation. Implementing policies that best promote financial development - such as mobilizing savings - are therefore, a matter of importance for all developing countries. A recent theoretical proposal that draws inspiration from the East Asian development experience hypothesises that by regulating to augment bank franchise values (i.e. the capitalized value of expected future profits accruing to banks), more savings can be mobilized compared with pursuing liberalization policies. This article provides an empirical test of this theory using a panel data set that covers 101 countries over the period 1994 to 2001. The results are not supportive of the theoretical proposal. In commenting on this result, it is noted that while intervening in the financial sector might not boost the aggregate quantity of savings mobilized, liberalization policies in developing countries should not necessarily be expedited, as other considerations are also clearly relevant.
Keyword Economics
Q-Index Code C1
Q-Index Status Confirmed Code

Document type: Journal Article
Sub-type: Article (original research)
Collections: Excellence in Research Australia (ERA) - Collection
2008 Higher Education Research Data Collection
School of Economics Publications
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Citation counts: TR Web of Science Citation Count  Cited 1 times in Thomson Reuters Web of Science Article | Citations
Scopus Citation Count Cited 3 times in Scopus Article | Citations
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Created: Mon, 18 Feb 2008, 17:13:37 EST