Browsing by Author "Kriese, M."

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Bank Ownership Types and Liquidity Creation: Evidence from Ghana
(Journal of African Business, 2021) Kusi, B.A.; Kriese, M.; Agbloyor, E.K.; et al.
In this study, we examine bank liquidity creation and the effect of ownership types on liquidity creation in Ghana for the first time. The study employs data on 26 banks obtained from Bank of Ghana between 2006 and 2016. Three panel estimation strategies, including two-step GMM, Hausman-Taylor and Fixed effect models, employed to arrive at the findings. Employing the narrow liquidity creation computation approach, the results show that average bank liquidity created within the 11-year period consistently increased over the period and reported the highest liquidity created in 2016. Interestingly, when considering bank ownership types, listed, state-owned, and foreign-owned banks report the highest average liquidity created compared to their unlisted, privately owned and locally owned counterparts, respectively. Employing regression models, the study finds that foreign and privately owned banks are less likely to create more liquidity compared to their locally and state-owned bank counterparts, implying that state-owned and locally owned (domestic) banks create more liquidity. These results imply that while there is much room for creating more liquidity, policymakers may hasten liquidity creation through locally and state-owned banks while at the same time designing policies that entice foreign and privately owned banks to create more liquidity, which is good for economic growth.
Financial access and economic development: the moderating role of financial consumer protection
(International Journal of Managerial Finance, 2019-04) Kriese, M.; Abor, J.Y.; Agbloyor, E.
Purpose The purpose of this paper is to examine the moderating role of financial consumer protection (FCP) in the access–development nexus. Design/methodology/approach The study is based on cross-country data on 102 countries surveyed in the World Bank Global Survey on FCP and Financial Literacy (2013). The White heteroscedasticity adjusted regressions and Two-stage least squares regressions (2SLS) are used for the estimation. Findings Interactions between FCP regulations that foster fair treatment, disclosure, dispute resolution and recourse and financial access have positive net effects on economic development. However, there is no sufficient evidence to suggest that interactions between financial access and enforcement and compliance monitoring regulations have a significant effect on economic development. Practical implications First, policy makers should continue with efforts aimed at instituting FCP regimes as part of strategies aimed at broadening access to financial services for enhanced economic development. Second, instituting FCP regimes per se may not be enough. Policy makers need to consider possible intervening factors such as the provision of adequate resources and supervisory authority, for compliance monitoring and enforcement to achieve the expected positive effect on economic development. Originality/value This study extends evidence in the law–finance–growth literature by providing empirical evidence on the effect of legal institution specific to the protection of retail financial consumers on the access–development nexus using a nouvel data set, the World Bank Global survey on FCP and Financial Literacy (2013).
Financial consumer protection and economic growth
(International Journal of Emerging Markets, 2019-03-11) Kriese, M.; Abor, J.Y.; Agbloyor, E.
Purpose – The purpose of this paper is to examine the link between financial consumer protection (FCP) and economic growth. Design/methodology/approach – The authors use cross-country data on 114 countries surveyed in the World Bank Global Survey on FCP and Financial Literacy (2013) and endogenous treatment regressions for the estimation. Findings – The results indicate that FCP enhances economic growth through fair treatment, responsible lending, enforcement and dispute resolution and recourse regulations. The authors find no evidence to suggest that disclosure and compliance monitoring regulations have an effect on economic growth. Practical implications – This study provides rich insight into the important question faced by policy makers, as to which FCP regulatory mechanisms to put in place to enhance economic growth. Originality/value – This study provides current, cross-country empirical evidence on the debate as to whether FCP enhances economic growth
Political business cycle and bank liquidity creation in Ghana: the role of financial sector transparency
(Macroeconomics and Finance in Emerging Market Economies, 2021) Gyeke-Dako, A.; Kusi, B.A.; Nabieu, G.A.A.; Kriese, M.
This study examines how financial sector transparency (FST) achieved through credit information sharing helps reduce the BLC growth induced by PBC in an emerging economy in Africa. The study employs twenty-seven banks in Ghana over three (3) different political election cycles between 2006 and 2016. The results are estimated using robust random effect panel models with technological and year-effect controls. The results shows that (i) PBC increases liquidity creation by banks, (ii) FST administered through credit information sharing encourages BLC; (iii) the joint term of PBC and FST yields a negative synergetic effect on BLC and (iv) promoting FST dampens the growth in liquidity creation induced by PBC in Ghana. These results imply that bank managers, regulators and policymakers must be mindful of liquidity creation especially during election periods, since it can lead to soaring credit defaults and losses. Also, FST can be used as tool for suppressing growth in liquidity creation induced through PBC by helping banks screen out bad political dealings and politicians.
What drives bank lending? A closer look at bank lending types in Africa
(African Journal of Economic and Management Studies, 2022) Ayagre, P.; Kusi, B.; Dzeha, G.; Kriese, M.
Purpose: In this study, the authors present unique evidence on bank lending types by paying particular attention to the factors that drive the different types of bank lending in Africa using bank-level data. Design/methodology/approach – In presenting such evidence, the study employs a robust fixed effect panel data with year and technological controls comprising 57 banks from 29 African economies between 2006 and and 2015. Findings: The results show that different factors affect different bank lending types differently in Africa. Specifically, while the authors find that total or aggregate bank lending is positively driven by bank capitalization and spread but negatively driven by bank size, corporate and commercial bank lending is positively driven by bank size, spread, inflation, elections and extent of business disclosure but negatively driven by bank capitalization, loan loss reserves, operational costs, and gross domestic product per capita. Moreover, interbank lending is both negatively and positively driven by bank capitalization and size respectively, while other bank lending type are driven positively by financial crises but negatively by bank size, inflation and extent of business disclosure. Finally, retail and consumer lending are positively driven by bank capitalization, loan loss reserves, and spread. while negatively driven by bank size and inflation. Practical implications: These imply that bank managers, regulators, policymakers and researchers must begin to see each bank lending category separately and independently since varying factors influence the different categories of bank lending differently. Originality/value: The study presents new insights into how different factors determine different lending types in Africa for the first time, to the best of the authors’ knowledge.