Article ID | Journal | Published Year | Pages | File Type |
---|---|---|---|---|
7355545 | International Review of Financial Analysis | 2018 | 36 Pages |
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.
Related Topics
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Authors
Marta Degl'Innocenti, Kevin Grant, Aleksandar Å eviÄ, Nickolaos G. Tzeremes,