Banks Ownership and Development Indicators Prior to the COVID-19 Pandemic. A Comparative Study

Marta Postuła, Stanisław Flejterski


Theoretical background: The role of banks in the economy has attracted scientific interest for many centuries now. Generally speaking, the relationship between financial development and economic growth has been widely discussed. Many studies investigated the links between the development of the financial sector and a given country’s social and economic growth using econometric methods such as cross-section, time series, panel data, company-level, industry-level and country level. The banking sector is an integral part of the economy and plays a key role in its development.

Purpose of the article: The ownership status of financial institutions is not neutral for themselves or for their clients. The research problem deals with analysing the impact of ownership changes in the banking and insurance sector on the economic and social development of selected countries, especially in Poland, measured with basic macroeconomic indicators. The article attempts to verify the hypothesis that the ownership structure in banking and insurance institutions has, contemporarily, no significant impact on the socio-economic development indicators, provided that these institutions are guided by business- rather than policy-based criteria in their decision making process.

Research methods: Both qualitative and quantitative research was used to empirically verify the hypotheses in question. Qualitative research is based on descriptive analysis while quantitative research will include statistical information systemization method, based on statistical source data analysis, and static dependence methodology, including fixed effects and random effects panel models.

Main findings: Literature studies and research show that moderation and pragmatism are needed in the financial sectors of EU countries, including Poland. We need both public (including state-owned) financial institutions (banks and insurers) and those controlled by private capital. It seems that today it would be difficult to accept that the entire financial sector of a given country would be taken over by public institutions – state-owned companies, and the omnipotence of private institutions would also be problematic. The main issue is proportions: instead of the exclusivity of one or the other form of ownership, one has to seek an intelligent balance between them (“this and that” instead of “either-or”).


banking institutions; ownership; GDP per capita; efficiency; banking profits

Full Text:



Albertazzi, U., & Marchetti, J.M. (2010). Credit supply, flight to quality and evergreening: An analysis of bank-firm relationships after Lehman. Banca d’Italia Working Paper, No.756.

Arcand, J.L., Berkes, E., & Panizza, U. (2012). Too much finance? IMF Working Paper, WP/12/161.

Asteriou, D., & Spanos, K. (2019). The relationship between financial development and economic growth during the recent crisis: Evidence from the EU. Finance Research Letters, 28(2019), 238–245. doi:10.1016/

Banal-Estañol, A., Boot, N., & Seldeslachts, J. (2022). Common ownership patterns in the European banking sector – the impact of the financial crisis. Journal of Competition Law & Economics, 18(1), 135–167. doi:10.1093/joclec/nhab023

Beck, T., Levine, R., & Loayza, N. (2000). Finance and the sources of growth. Journal of Financial Economics, 58, 261–300.

Berger, A., Hasan, I., & Zhou, M. (2010). The effects of focus versus diversification on bank performance: Evidence from Chinese banks. Journal of Banking and Finance, 34, doi:10.1016/j.jbankfin.2010.01.010

Bénabou, R., & Tirole, J. (2009). Individual and corporate social responsibility. Economica, 77(205), 1–5. doi:10.1111/j.1468-0335.2009.00843

Blum, J., (1999). Do capital adequacy requirements reduce risks in banking? Journal of Banking & Finance, 23(5), 755–771.

Bolt, W., De Haan, L., Hoeberichts, M., van Oordt M., & Swank, J. (2012). Bank profitability during recessions. Journal of Banking & Finance, 36(9), 2552–2564.

Cerra, V., & Saxena, S. (2017). Booms, crises, and recoveries: A new paradigm of the business cycle and its policy implications. IMF Working Paper, 17/250.

Ciccarelli, M., & Mojon, B. (2010). Global inflation. Review of Economics and Statistics, 92(3), 524–535.

Craigwell, R., Downes, D., & Howard, M. (2001). The finance-growth nexus: A multivariate VAR analysis of a small open economy. Savings and Development, 25(2): 209–223.

DeBondt, W., Forbes, W., Hamalainen, P., & Muragoglu, Y.G. (2010). What can behavioural finance teach us about finance? Qualitative Research in Financial Markets, 2(1), 29–36. doi:10.1108/17554171011042371

Dewatripont, M., & Rochet, J.C. (2010). Balancing the Banks. Global Lessons from the Financial Crisis. Princeton: Princeton University Press.

DeYoung, R., & Rice, T. (2004). Non-interest income and financial performance at U.S. commercial banks. The Financial Review, 37.

Drechsler, I., Savov, A., & Schnabl, P. (2017). The deposits channel of monetary policy. Quarterly Journal of Economics, 132(4), 1819–1876.

Ducan E., & Elliot, G. (2004). Effectiveness customer service and financial performance among Australian financial institutions. International Journal of Bank Marketing, 22(5), 319–342.

Entrop, O., Memmel, C., Ruprecht, B., & Wilkens, M. (2015). Determinants of bank interest margins: Impact of maturity transformation. Journal of Banking and Finance, 54, 1–19.

Fase, M.M.G., & Abma, R.C.N. (2003). Financial environment and economic growth in selected Asian countries. Journal of Asian Economics, 14(1), 11–21.

Feyzioglu, T. (2009). Does good financial performance mean good financial intermediation in China? IMF Working Paper 09/170. Retrieved from

Flejterski, S. (2019). Sustainable financial systems. In M. Ziolo & B.S. Sergi (Eds.), Financing Sustainable Development: Key Challenges and Prospects (pp. 269–297). Palgrave Macmillam.

García-Herrero, A., Gavilá, S., & Santabárbara, D. (2009). What explains the low profitability of Chinese banks? Journal of Banking & Finance, 33(11), 2080–2092.

Gertler, M., & Gilchrist, S. (2018). What Happened: Financial Factors in the Great Recession. NBER Working Paper, 24746.

Grigorian, D., & Manole, V. (2002). Determinants of commercial bank performance in transition. World Bank Policy Research Paper, 2850.

Gunter, U., Krenn, G., & Sigmund, M. (2013). Macroeconomic, market and bank specific determinants of the net interest margin in Austria. OeNB Financial Stability Report, 25, 87–101.

Hellmann, T.F., Murdock, K.C., & Stiglitz, J.E. (2000). Liberalization, moral hazard in banking, and prudential regulation: Are capital requirements enough? American Economic Review, 9(1), 147–165.

Herwartz, H., & Walle, Y.M. (2014). Determinants of the link between financial and economic development: Evidence from a functional coefficient model. Economic Modelling, 37(2), 417–427.

Héricourt, J., & Poncet, S. (2009). FDI and credit constraints: Firm level evidence from China. Economic Systems, 33(1), 1–21. doi:10.1016/j.ecosys.2008.07.001

Horvath, R. (2009). The determinants of the interest rate margins of Czech banks. Czech Journal of Economics and Finance, 59(2), 128–136.

Hsueh, S.J., Hu, Y.H., & Tu, C.H. (2013). Economic growth and financial development in Asian countries: A bootstrap panel granger causality analysis. Economic Modelling, 32, 294–301.

Kapan, T., & Minoiu, C. (2013). Balance sheet strength and bank lending during the global financial crisis. IMF Working Paper, 13(102).

Kar, M., Nazlioglu, S., & Agir, H. (2011). Financial development and economic growth nexus in the MENA countries: Bootstrap panel granger causality analysis. Economic Modelling, 28, 685–693.

Kim, D. & Santomero, A.M. (1988). Risk in banking and capital regulation. The Journal of Finance, 43(5), 1219–1233.

Kindleberger, Ch. (1978). Manias, Panics and Crashes. New York: Basic Books.

King, R., & Levine, R. (1993). Finance, entrepreneurship and economic growth: Theory and evidence. Journal of Monetary Economics, 32(3), 513–542.

Kirkpatrick, C. (2000). Financial Development, Economic Growth and Poverty Reduction. Mahbub Ul Haq Memorial Lecture at 16th AGM of PSDE.

Koehn, M., & Santomero, A.M. (1980). Regulation of bank capital and portfolio risk. The Journal of Finance, 35(5), 1235–1244.

Levine, R., Loayza, N., & Beck, T. (2018). Financial intermediation and growth: Causality and causes. Journal of Monetary Economics, 46(1), 231–727.

Liu, P., Peng, Y., Shi, Y., & Yang J. (2022). Financial structures, political risk and economic growth. The European Journal of Finance, 28(4–5), 356–376.

Marcelin, I., Egbendewe, Y., Oloufade, D., & Sun, W. (2022). Financial inclusion, bank ownership, and economy performance: Evidence from developing countries. Finance Research Letters, 46(A), doi:10.1016/

Menicucci, E., & Paolucci, G. (2016). Factors affecting bank profitability in Europe: An empirical investigation. African Journal of Business Management, 10(17), 410–420.

Menyah K., Nazlioglu, S., & Wolde-Rufael, Y. (2014). Financial development, trade openness and economic growth in African countries: New insights from a panel causality approach. Economic Modelling, 37, 386–394.

Micco, A., Panizza, U., & Yanez, M. (2007). Bank ownership and performance. Does politics matter? Journal of Banking & Finance, 31(1), 219–241.

Minsky, H. (1986). Stabilizing an Unstable Economy. New Haven: Yale University Press.

Mungly, Y., Seetanah, B., Babajee, R., & Maraye, N. (2016). Determinants of Mauritian commercial banking profitability. Proceedings of the Fifth Asia-Pacific Conference on Global Business, Economics, Finance and Social Sciences.

Murinde, V. (2012). Financial development and economic growth: Global and African experience. Journal of African Economies, 21, 110–156.

Postuła, M., & Tomkiewicz, J. (2019). Consequences of fiscal adjustment and public finance management. The Costs of limiting the fiscal imbalance in eurozone countries. Central European Journal of Public Policy, 13(1), 1–11.

Pradhan, R., Arvin, M.B., Norman, N.R., & Nishigaki, Y. (2014). Does banking sector development affect economic growth and inflation? A panel cointegration and causality approach. Applied Financial Economics, 24(7), 465–480.

Raza, A., Farhan, M., & Akram, M. (2011). A comparison of financial performance. International Journal of Business and Social Science, 2(9).

Repullo, R., & Suarez, J. (2004). Loan pricing under Basel capital requirements. Journal of Financial Intermediation, 13(4), 496–521.

Rumler, F., & Waschiczek, W. (2016). Have changes in the financial structure affected bank profitability? Evidence for Austria. The European Journal of Finance, 22(10), 803–824.

Rye, C.D., & Jackson, T. (2020). Using critical slowing down indicators to understand economic growth rate variability and secular stagnation. Scientific Reports, 10, 10481. doi:10.1038/s41598-020-66996-6

Schumpeter, J.A. (1934). Theorie der wirtschaftlichen Entwicklung. Leipzig: Duncker & Humboldt.

Shiller, R.J. (2012). Finance and the Good Society. Princeton: Princeton University Press.

Tarawneh, M. (2006). A comparison of financial performance in the banking sector: Some evidence from Omani commercial banks. International Research Journal of Finance and Economics, 3.

Thorsten, B., & Levine, R. (2004). Stock markets, banks, and growth: Panel evidence. Journal of Banking & Finance, 28(3), 423–442. doi:10.1016/S0378-4266(02)00408-9

Uddin, G.S., Shahbaz, M., Arouri, M., & Teulon, F. (2014). Financial development and poverty reduction nexus: A cointegration and causality analysis in Bangladesh. Economic Modelling, 36(1), 405–412.

Zhang, B., Bi, J., Yuan, Z., Ge, J., Liu, B., & Bu, M. (2008). Why do firms engage in environmental management? An empirical study in China. Journal of Cleaner Production, 16(10), 1036–1045.

Data publikacji: 2023-03-14 22:43:24
Data złożenia artykułu: 2022-11-07 14:53:11


Total abstract view - 173
Downloads (from 2020-06-17) - PDF - 0



  • There are currently no refbacks.

Copyright (c) 2023 Stanisław Flejterski, Marta Postuła

Creative Commons License
This work is licensed under a Creative Commons Attribution 4.0 International License.