This paper provides nuanced evidence on the effect of competitiveness and financial stability on banks' innovation-capacity (technological-change) levels during the Global Financial Crisis (GFC) in 2007-2008. We applied contemporary developments in non-parametric frontier analysis, employing a new index, the Global Financial Centres Index, to measure the business competitiveness of 45 financial centres. Our findings indicated a nonlinear and positive relationship between financial centres' competitiveness, banks' stability and innovation-capacity levels. This suggests that banks' ability to increase stability alongside financial centres' stability in a highly competitive environment acts as a protective measure against the GFC's negative effects.

Financial stability, competitiveness and banks' innovation capacity: Evidence from the Global Financial Crisis / M. Degl'Innocenti, K. Grant, A. Šević, N.G. Tzeremes. - In: INTERNATIONAL REVIEW OF FINANCIAL ANALYSIS. - ISSN 1873-8079. - 59(2018), pp. 35-46. [10.1016/j.irfa.2018.07.009]

Financial stability, competitiveness and banks' innovation capacity: Evidence from the Global Financial Crisis

M. Degl'Innocenti;
2018

Abstract

This paper provides nuanced evidence on the effect of competitiveness and financial stability on banks' innovation-capacity (technological-change) levels during the Global Financial Crisis (GFC) in 2007-2008. We applied contemporary developments in non-parametric frontier analysis, employing a new index, the Global Financial Centres Index, to measure the business competitiveness of 45 financial centres. Our findings indicated a nonlinear and positive relationship between financial centres' competitiveness, banks' stability and innovation-capacity levels. This suggests that banks' ability to increase stability alongside financial centres' stability in a highly competitive environment acts as a protective measure against the GFC's negative effects.
Global Financial Crisis; Financial centres; Innovation capacity; Non-parametric frontier analysis
Settore SECS-P/11 - Economia degli Intermediari Finanziari
2018
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Utilizza questo identificativo per citare o creare un link a questo documento: https://hdl.handle.net/2434/794849
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