Are Transparent Banks More Efficient?

Etienne Farvaque (1) , Catherine Refait-Alexandre (2) , Laurent Weill (3)

1 EDEHN - Equipe d'Economie Le Havre Normandie
2 CRESE - Centre de REcherches sur les Stratégies Economiques (UR 3190)
3 LARGE - Laboratoire de Recherche en Gestion et Economie

This study examines the relationship between bank transparency and efficiency. Using a unique data set for Russian banks, we find that transparency is important and that, among the dimensions of transparency, the transparency in board and management structure and process represents the most significant determinant. These results are controlled for size effects, the structure of liabilities, the structure of assets, and nonperforming loans. This highlights the role of transparency in improving efficiency, particularly in transition economies.

Domaines: Economies et finances

Etienne Farvaque, Catherine Refait-Alexandre, Laurent Weill. Are Transparent Banks More Efficient?. Eastern European Economics, 2012, 50 (4), pp.60 - 77. ⟨10.2753/eee0012-8775500404⟩. ⟨hal-03126787⟩