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Politicization, banking experience and risk in savings banks

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  • Emma García-Meca
  • Juan Sánchez-Ballesta

Abstract

During the global financial crisis, criticism of the politicization and lack of professionalization of the savings banks has taken a central position in the political debate. The aim of this article is to analyze if the political presence of governing bodies in Spanish savings banks has been reflected in their various risk-taking behaviors before and during the financial crisis. We will also analyze whether the influence of the chairman’s banking experience matters. The results do not provide evidence that the composition of the boards of savings bank, or even their politicization, have played a role. However we show that savings banks run by a chairman with previous banking experience are likely to be significantly more solvent and less volatile. Copyright Springer Science+Business Media New York 2014

Suggested Citation

  • Emma García-Meca & Juan Sánchez-Ballesta, 2014. "Politicization, banking experience and risk in savings banks," European Journal of Law and Economics, Springer, vol. 38(3), pages 535-553, December.
    • Handle: RePEc:kap:ejlwec:v:38:y:2014:i:3:p:535-553
    DOI: 10.1007/s10657-012-9377-5
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    More about this item

    Keywords

    Corporate governance; Crisis; Policy; G21; G30; G34;
    All these keywords.

    JEL classification:

    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • G30 - Financial Economics - - Corporate Finance and Governance - - - General
    • G34 - Financial Economics - - Corporate Finance and Governance - - - Mergers; Acquisitions; Restructuring; Corporate Governance

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