Menu Expand
  1. Journals
  2. Economics, Finance, Business & Management
  3. Vierteljahrshefte zur Wirtschaftsforschung
  4. Vol. 89, Issue 3
  5. pp. 61–77

JOURNAL ARTICLE

Cite JOURNAL ARTICLE

Style
Frigerio, M., Vandone, D. A firm-level analysis of development banks in Europe. Vierteljahrshefte zur Wirtschaftsforschung, 89(3), 61-77. https://doi.org/10.3790/vjh.89.3.61
Frigerio, Marco and Vandone, Daniela "A firm-level analysis of development banks in Europe" Vierteljahrshefte zur Wirtschaftsforschung 89.3, , 61-77. https://doi.org/10.3790/vjh.89.3.61
Frigerio, Marco/Vandone, Daniela: A firm-level analysis of development banks in Europe, in: Vierteljahrshefte zur Wirtschaftsforschung, vol. 89, iss. 3, 61-77, [online] https://doi.org/10.3790/vjh.89.3.61
Format
Download

A firm-level analysis of development banks in Europe

Frigerio, Marco | Vandone, Daniela

Vierteljahrshefte zur Wirtschaftsforschung, Vol. 89 (2020), Iss. 3 : pp. 61–77

1 Citations (CrossRef)

Read Now Download (PDF)

Additional Information

Article Details

Publisher Name
Duncker & Humblot
DOI
https://doi.org/10.3790/vjh.89.3.61
Language
English
Pages
17
Keywords

Author Details

Marco Frigerio, Department of Economics, Management and Quantitative Methods, Università degli Studi di Milano

  • Marco Frigerio is Research Fellow of Banking and Finance at the Department of Economics, Management and Quantitative methods of the University of Milan. In 2006 he graduated in Economics at the University of Siena. He holds a PhD in Economics, Markets, Institutions from the IMT Lucca Institute for Advanced Studies. He has worked as researcher at Banca Monte dei Paschi di Siena and UniCredit Group. His research interests are in financial economics, development banks, monetary economics and international finance.
  • Email
  • Search in Google Scholar

Daniela Vandone, Department of Economics, Management and Quantitative Methods, Università degli Studi di Milano

  • Daniela Vandone is Full Professor of Banking and Finance at the University of Milan. Her research interests are in economics of financial markets and intermediaries, with a focus on microeconomics of financial intermediaries, financial regulation at a European level, financial investments and risk management. She published widely at international level; her researches have appeared, among others, in Journal of Economic Psychology, Energy Policy, Quantitative Finance, International Review of Economics and Finance, European Journal of political economy, Cambridge University Press.
  • Email
  • Search in Google Scholar

Cited By

  1. Innovation - Research and Development for Human, Economic and Institutional Growth

    Innovation and Global Sustainable Development: What Role for Development Banking?

    Frigerio, Marco

    2024

    https://doi.org/10.5772/intechopen.112062 [Citations: 0]

References

  1. Bleda, M., and P. Del Rio (2013): The market failure and the systemic failure rationales in technological innovation systems. Research Policy, 42 (5), 1039 – 1052.  Google Scholar
  2. Cingolani, M. (2019): Necessary Public Investment: The Role of Public Banks. International Journal of Political Economy, 48 (3), 275 – 300.  Google Scholar
  3. Clò, S., M. Frigerio, and D. Vandone (2020a): Contemporary Development Financial Institutions in Europe. In: L. Bernier, M. Florio, and P. Bance (Eds.), The Routledge Handbook of State-Owned Enterprises. Routledge Taylor and Francis Group.  Google Scholar
  4. Clò, S., M. Frigerio, and D. Vandone (2020b): Financial support to innovation: the role of European development financial institutions. DISEI working paper, n.10.  Google Scholar
  5. Degl’Innocenti, M., M. Frigerio, and S. Zhou (2020): Development banks and the syndicate structure: Evidence from a world sample. Available at SSRN: https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3615477  Google Scholar
  6. Eslava, M., and W. Freixas (2016): Public Development Banks and credit market imperfections. Documentos CIDE n.6.  Google Scholar
  7. European Commission (2014): An Investment Plan for Europe. Communication from the Commission to the European Parliament, the Council, the European Central Bank, the European Economic and Social Committee, the Committee of the Regions and the European Investment Bank. COM(2014)903 final, Brussels.  Google Scholar
  8. European Commission (2015a): Investment dynamics in the euro area since the crisis. Quarterly Report on the Euro Area, 14 (1), 35 – 43. DG ECFIN.  Google Scholar
  9. European Commission (2015b): Working together for jobs and growth: The role of National Promotional Banks (NPBs) in supporting the Investment Plan for Europe. Communication from the Commission to the European Parliament and the Council, COM(2015) 361 final, Brussels.  Google Scholar
  10. European Commission (2020): Covid-19 and the mobilization of public development banks in the EU. Policy paper n.252, April.  Google Scholar
  11. European Investment Bank (2014): Financial Statement.  Google Scholar
  12. European Investment Bank (2018): Financial Statement.  Google Scholar
  13. European Parliament (2016): New Financial Instruments and the Role of National Promotional Banks. DG IPOL Study.  Google Scholar
  14. Foray, D., D. C. Mowery, and R. R. Nelson (2012): Public R&D and societal challenges: what lessons from mission R&D programs? Research Policy, 41, 1697 – 1702.  Google Scholar
  15. Frigerio M., and D. Vandone (2020): European development banks and the political cycle. European Journal of Political Economy, 62, 101852.  Google Scholar
  16. Hart, O., A. Shleifer, and R. W. Vishny (1997): The proper scope of government: theory and an application to prisons. The Quarterly Journal of Economics, 112 (4), 1127 – 1161.  Google Scholar
  17. Kornai, J. (1979): Resource-constrained versus demand-constrained systems. Econometrica, 47, 801 – 819.  Google Scholar
  18. La Porta, R., F. Lopez-de-Silanes, and A. Shleifer (2002): Government ownership of banks. The Journal of Finance, 57 (1), 265 – 301.  Google Scholar
  19. Mazzuccato, M., and C. C. R. Penna (2016): Beyond market failures: The market creating and shaping roles of state investment banks. Journal of Economic Policy Reform, 19 (4), 305 – 326.  Google Scholar
  20. Micco, A., U. Panizza, and M. Yanez (2007): Bank ownership and performance. Does politics matter? Journal of Banking and Finance, 31 (1), 219 – 241.  Google Scholar
  21. Multilateral Development Banks (2017): MDB Action Plan to optimize balance sheets. Report.  Google Scholar
  22. Munir, W., and K. P. Gallagher, (2020): Scaling Up for Sustainable Development: Benefits and Costs of Expanding and Optimizing Balance Sheet in the Multilateral Development Banks. Journal of International Development, 32 (2), 222 – 243.  Google Scholar
  23. OECD (2015): Infrastructure financing instruments and incentives. Report.  Google Scholar
  24. OECD (2017): Breaking silos: actions to develop infrastructure as an asset class and address the information gap. Report.  Google Scholar
  25. OECD (2018a): Capital market instruments to mobilize institutional investors to infrastructure and SME financing in Emerging Market Economies. Report.  Google Scholar
  26. OECD (2018b): The State of blended finance. Report.  Google Scholar
  27. OECD (2018c): Making Blended Finance Work for the Sustainable Development Goals, OECD Publishing, Paris.  Google Scholar
  28. Settimo, R. (2017): Towards a more efficient use of multilateral development banks’ capital. Bank of Italy Occasional Paper, n.393.  Google Scholar
  29. Shleifer, A., and R. W. Vishny (1994): Politicians and firms. Quarterly Journal of Economics, 109 (4), 995 – 1025.  Google Scholar
  30. Shleifer, A., and R. W. Vishny (1997): A survey of corporate governance. Journal of Finance, 52 (2), 737 – 783.  Google Scholar
  31. Wruuck, P. (2015): Promoting investment and growth: The role of development banks in Europe. Deutsche Bank Research.  Google Scholar

Abstract

Summary: We perform a cross-country firm-level analysis of all development banks headquartered in Europe. The goal is to investigate their financial profile and efficiency characteristics and to shed light on some crucial issues, which may underline their capacity to raise external sources of finance in addition to capital contributions from shareholder governments (e. g. their capital generation and cost efficiency, the quality of their loan portfolio, the composition of their sources of finance). A financial statement analysis of their accounting features is cogent in the light of the relevance attributed by European policy makers to the economic and financial sustainability of development banks, given the key role they have been called to play in the European economy since the 2008 crises. Indeed, although development banks have goals that go beyond profitability, they need to combine their socio-economic goals with conditions of efficiency and profitability, in order to “stand on their own feet” and secure a reasonable level of financial strength and stability. We first map all development banks headquartered in Europe. We then collect financial information within the reference period 2008 – 2018 for the whole population of development banks. We also split the sample according to size, in order to assess their dimensional heterogeneity. This study provides policymakers with quantitative information on the economic and financial profile of contemporary promotional financial institutions, which may be valuable in the current debate on their role and relevance in Europe.

Contact

Duncker & Humblot GmbH Carl-Heinrich-Becker-Weg 9 12165 Berlin, Deutschland T: +49 30 790006-0

Quick Navigation

2024 Duncker & Humblot GmbH

Powered by CloudPublish

We use cookies to ensure that you get the best experience on our website. Learn more about how we use cookies.