The Effect of Bank Activity Restriction on Life Insurers’ Efficiency: Evidence from European Markets

Rongrong Zhang

doi:10.5539/ijef.v4n4p55

The Effect of Bank Activity Restriction on Life Insurers’ Efficiency: Evidence from European Markets

Rongrong Zhang

Finance

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Abstract

This paper examines the relation between bank entry restrictions into insurance operations and life insurers’ operating efficiency for a sample of 21 European countries over 1995-2003. Controlling for insurance market penetration, insurance risk retention, legal environment, and the economic development of the hosting country, we document that insurers operate more efficiently in markets with lower bank entry restrictions. Our results suggest that financial deregulation has positive spill-over effect, supporting the deregulation efforts in the global financial markets.

Original language	American English
Journal	International Journal of Economics and Finance
Volume	4
DOIs	https://doi.org/10.5539/ijef.v4n4p55
State	Published - Apr 1 2012

Disciplines

Business Administration, Management, and Operations
Economics
Finance
Finance and Financial Management

Keywords

Bank entry restrictions
Financial deregulation
Operating efficiency
Spill-over effect

UN SDGs

This output contributes to the following UN Sustainable Development Goals (SDGs)

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10.5539/ijef.v4n4p55License: Unspecified

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Cite this

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title = "The Effect of Bank Activity Restriction on Life Insurers{\textquoteright} Efficiency: Evidence from European Markets",

abstract = " This paper examines the relation between bank entry restrictions into insurance operations and life insurers{\textquoteright} operating efficiency for a sample of 21 European countries over 1995-2003. Controlling for insurance market penetration, insurance risk retention, legal environment, and the economic development of the hosting country, we document that insurers operate more efficiently in markets with lower bank entry restrictions. Our results suggest that financial deregulation has positive spill-over effect, supporting the deregulation efforts in the global financial markets.",

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AB - This paper examines the relation between bank entry restrictions into insurance operations and life insurers’ operating efficiency for a sample of 21 European countries over 1995-2003. Controlling for insurance market penetration, insurance risk retention, legal environment, and the economic development of the hosting country, we document that insurers operate more efficiently in markets with lower bank entry restrictions. Our results suggest that financial deregulation has positive spill-over effect, supporting the deregulation efforts in the global financial markets.

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KW - Financial deregulation

KW - Operating efficiency

KW - Spill-over effect

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JO - International Journal of Economics and Finance

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The Effect of Bank Activity Restriction on Life Insurers’ Efficiency: Evidence from European Markets

Abstract

Disciplines

Keywords

UN SDGs

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