The real effects of banking supervision: evidence from enforcement actions
We present a novel way to examine macro-financial linkages by focusing on the real effects of bank supervisors’ enforcement actions. Exploiting plausibly exogenous variation in supervisory monitoring intensity, we show that enforcement actions in single-market banks trigger temporarily large adverse...
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| Format: | Article |
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Elsevier
2016
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| Online Access: | https://eprints.nottingham.ac.uk/52483/ |
| _version_ | 1848798736469196800 |
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| author | Danisewicz, Piotr McGowan, Danny Onali, Enrico Schaeck, Klaus |
| author_facet | Danisewicz, Piotr McGowan, Danny Onali, Enrico Schaeck, Klaus |
| author_sort | Danisewicz, Piotr |
| building | Nottingham Research Data Repository |
| collection | Online Access |
| description | We present a novel way to examine macro-financial linkages by focusing on the real effects of bank supervisors’ enforcement actions. Exploiting plausibly exogenous variation in supervisory monitoring intensity, we show that enforcement actions in single-market banks trigger temporarily large adverse effects for the macroeconomy by reducing personal income growth, the number of establishments, and increasing unemployment. These effects are related to contractions in bank lending and liquidity creation, and are more pronounced when we consider enforcement actions on both single-market and multi-market banks, and in counties with fewer banks and greater external financial dependence. |
| first_indexed | 2025-11-14T20:24:31Z |
| format | Article |
| id | nottingham-52483 |
| institution | University of Nottingham Malaysia Campus |
| institution_category | Local University |
| last_indexed | 2025-11-14T20:24:31Z |
| publishDate | 2016 |
| publisher | Elsevier |
| recordtype | eprints |
| repository_type | Digital Repository |
| spelling | nottingham-524832020-05-04T18:15:09Z https://eprints.nottingham.ac.uk/52483/ The real effects of banking supervision: evidence from enforcement actions Danisewicz, Piotr McGowan, Danny Onali, Enrico Schaeck, Klaus We present a novel way to examine macro-financial linkages by focusing on the real effects of bank supervisors’ enforcement actions. Exploiting plausibly exogenous variation in supervisory monitoring intensity, we show that enforcement actions in single-market banks trigger temporarily large adverse effects for the macroeconomy by reducing personal income growth, the number of establishments, and increasing unemployment. These effects are related to contractions in bank lending and liquidity creation, and are more pronounced when we consider enforcement actions on both single-market and multi-market banks, and in counties with fewer banks and greater external financial dependence. Elsevier 2016-10-27 Article PeerReviewed Danisewicz, Piotr, McGowan, Danny, Onali, Enrico and Schaeck, Klaus (2016) The real effects of banking supervision: evidence from enforcement actions. Journal of Financial Intermediation . ISSN 1042-9573 Macro-financial linkages; Real effects; Economic growth; Supervision; Enforcement actions https://www.sciencedirect.com/science/article/pii/S104295731630050X doi:10.1016/j.jfi.2016.10.003 doi:10.1016/j.jfi.2016.10.003 |
| spellingShingle | Macro-financial linkages; Real effects; Economic growth; Supervision; Enforcement actions Danisewicz, Piotr McGowan, Danny Onali, Enrico Schaeck, Klaus The real effects of banking supervision: evidence from enforcement actions |
| title | The real effects of banking supervision: evidence from enforcement actions |
| title_full | The real effects of banking supervision: evidence from enforcement actions |
| title_fullStr | The real effects of banking supervision: evidence from enforcement actions |
| title_full_unstemmed | The real effects of banking supervision: evidence from enforcement actions |
| title_short | The real effects of banking supervision: evidence from enforcement actions |
| title_sort | real effects of banking supervision: evidence from enforcement actions |
| topic | Macro-financial linkages; Real effects; Economic growth; Supervision; Enforcement actions |
| url | https://eprints.nottingham.ac.uk/52483/ https://eprints.nottingham.ac.uk/52483/ https://eprints.nottingham.ac.uk/52483/ |