D'Apice, Vincenzo and Fiordelisi, Franco and Puopolo, Giovanni W (2023) Lending quality and contracts enforcement reforms. European Financial Management, 30 (1). pp. 440-464. DOI https://doi.org/10.1111/eufm.12422
D'Apice, Vincenzo and Fiordelisi, Franco and Puopolo, Giovanni W (2023) Lending quality and contracts enforcement reforms. European Financial Management, 30 (1). pp. 440-464. DOI https://doi.org/10.1111/eufm.12422
D'Apice, Vincenzo and Fiordelisi, Franco and Puopolo, Giovanni W (2023) Lending quality and contracts enforcement reforms. European Financial Management, 30 (1). pp. 440-464. DOI https://doi.org/10.1111/eufm.12422
Abstract
We investigate the causal relationship between the efficiency of country's judicial system and the quality of bank lending, using the contracts enforcement reforms implemented in four European countries as a quasi-natural experiment. We find that strengthening contracts enforcement determines large, significant and persistent reductions in banks' nonperforming loans. Our results have important policy implications: they point at judicial efficiency as a critical determinant of the stability of the banking sector and its resilience to adverse shocks such as the recent Covid-19 pandemic.
Item Type: | Article |
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Uncontrolled Keywords: | banking stability; judicial systems; nonperforming loans |
Divisions: | Faculty of Social Sciences Faculty of Social Sciences > Essex Business School |
SWORD Depositor: | Unnamed user with email elements@essex.ac.uk |
Depositing User: | Unnamed user with email elements@essex.ac.uk |
Date Deposited: | 24 May 2023 15:23 |
Last Modified: | 16 May 2024 21:49 |
URI: | http://repository.essex.ac.uk/id/eprint/35672 |