نظم و انضباط بازار و بهره وری بانک

This paper investigates whether depositors and market investors exert disciplinary pressure on bank management in terms of efficiency improvement. We find that banks with more outstanding deposits are more cost-efficient, although little effect is found with respect to profit efficiency. This implies that depositors, the primary providers of funds to banks, likely play an important role in disciplining bank management, at least in terms of enforcing efficient use of inputs. Market discipline has garnered increasing attention as a mechanism to ensure bank soundness. Our results imply that depositors, the largest creditors to banks, may be of primary importance in this mechanism.

The aim of this paper is to investigate whether investors have a disciplinary effect on bank management. Bank corporate governance has a uniqueness that does not apply to non-financial corporations. In banking, the presence of regulators reduces the need for governance from other stakeholders. Due to the increasing complexity of banking organizations and to risk management practices, however, regulators have begun recently to draw attention to market discipline, the use of market information to discipline banks for their safe and sound management, especially as this concept was designated as one of the three pillars of the Basel II International Capital Framework (see Bank for International Settlement, 2006). The role of market investors in disciplining banks is thus not straightforward.

This paper investigates whether depositors and investors in securities issued by banks put disciplinary pressure on bank management. We find evidence that banks with more outstanding deposits are more efficient, at least in terms of cost efficiency. This finding is consistent with the hypothesis that depositors, the primary investors in banks, play an important role in disciplining bank management. Market discipline has garnered increasing attention as a mechanism to ensure bank soundness. Our results imply that depositors, the largest creditors to banks, may be of primary importance in this mechanism.