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Do Exchange Rate Regimes Matter For Bank Performance? The Case Of Non-Eurozone Eu Members

Author

Listed:
  • Iulian IHNATOV

    (Alexandru Ioan Cuza University of Iaºi, Faculty of Economics and Business Administration, B-dul Carol 1 nr.22, Iaºi, Romania)

  • Bogdan CÃPRARU

    (Alexandru Ioan Cuza University of Iaºi, Faculty of Economics and Business Administration, B-dul Carol 1 nr.22, Iaºi, Romania)

Abstract

This paper examines the effect of the exchange rate regimes on bank performance across 15 EU member countries outside the Eurozone for the period from 2001 to 2010. The period chosen allows the study of the regime relevance before and during the recent international financial crisis. The results suggest that the rigid exchange rate regimes may have a positive effect on the banks’ performance during the pre-adoption of the Euro. The adoption of the common currency should not determine a reversal of the performance effect. The results are not robust for all the performance measures employed. Moreover, the exchange rate regimes seem irrelevant for the bank performance during the financial turmoils.

Suggested Citation

  • Iulian IHNATOV & Bogdan CÃPRARU, 2013. "Do Exchange Rate Regimes Matter For Bank Performance? The Case Of Non-Eurozone Eu Members," Review of Economic and Business Studies, Alexandru Ioan Cuza University, Faculty of Economics and Business Administration, issue 12, pages 95-106, December.
    • Handle: RePEc:aic:revebs:y:2013:i:12:ihnatovi
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    References listed on IDEAS

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    More about this item

    Keywords

    Banking; financial crisis; performance; Non-Eurozone countries;
    All these keywords.

    JEL classification:

    • C14 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Semiparametric and Nonparametric Methods: General
    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages

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