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Contagion in banking due to BCCI'S failure: Evidence from national equity indices

Kanas, Angelos (2004) Contagion in banking due to BCCI'S failure: Evidence from national equity indices. International Journal of Finance and Economics, 9 (3). pp. 245-255. ISSN 1076-9307. (doi:10.1002/ijfe.224) (The full text of this publication is not currently available from this repository. You may be able to access a copy if URLs are provided)

The full text of this publication is not currently available from this repository. You may be able to access a copy if URLs are provided. (Contact us about this Publication)
Official URL
http://dx.doi.org/10.1002/ijfe.224

Abstract

We examine whether the failure of the multinational banking group BCCI caused contagion effects in the banking sectors of four countries where BCCI had established operations, namely the UK, the US, Spain and Switzerland. We find evidence of contagion effects in the UK and Spain which appear to have registered several months before the eventual closure announcement. There is no evidence of contagion effects in the US and Switzerland. Our results have implications for the stability of the European banking sector, as banks licensed anywhere in the EU will be able to set up branches in other EU countries without needing to obtain further authorization. © 2004 John Wiley & Sons, Ltd.

Item Type: Article
DOI/Identification number: 10.1002/ijfe.224
Uncontrolled keywords: Banking, Banking supervision, BCCI, Contagion, Cumulative abnormal returns, Deposit insurance, banking, financial market, multinational enterprise, Central Europe, Eurasia, Europe, North America, Southern Europe, Spain, Switzerland, United Kingdom, United States, Western Europe
Subjects: H Social Sciences > HG Finance
Divisions: Faculties > Social Sciences > Kent Business School > Accounting and Finance
Depositing User: Tracey Pemble
Date Deposited: 22 May 2014 15:03 UTC
Last Modified: 29 May 2019 12:36 UTC
Resource URI: https://kar.kent.ac.uk/id/eprint/41160 (The current URI for this page, for reference purposes)
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