Indeksy dyscypliny rynkowej. Propozycja nowego podejścia do pomiaru siły dyscypliny rynkowej w bankowości

Krzysztof Jackowicz; Oskar Kowalewski; Łukasz Kozłowski

Published : 2024-02-19

Vol. 56 No. 3 (2014)

Market dscipline indexes. A proposed new approach to measuring the strength of market discipline in banking

Krzysztof Jackowicz

Oskar Kowalewski

Łukasz Kozłowski

Abstract

This article presents a new method designed to measure the strength of market discipline in banking using synthetic indexes. Their main advantage – as compared to traditional methods of market discipline analysis – is the ease of comparisons in time and space. Apart from that, they enable us to establish the determinants of the proper functioning of market discipline. Based on banks’ financial statements we calculated and presented the values of the indexes for almost 80 countries. The indexes, despite differences in their construction, classify countries in a similar way with respect to the exercised strength of market discipline through the cost
of capital and its availability. In an example we use the indexes to analyze determinants of market discipline and show that the influence of widely understood education is conditional on safety net arrangements and a country’s wealth.

Keywords:

market discipline, market discipline indexes, deposit insurance, education

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Jackowicz, K., Kowalewski, O., & Kozłowski, Łukasz. (2024). Market dscipline indexes. A proposed new approach to measuring the strength of market discipline in banking. Safe Bank, 56(3), 7–49. Retrieved from https://ojs.bfg.pl/index.php/bb/article/view/362

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Krzysztof Jackowicz

redakcja@bfg.pl

Affiliation:
Akademia Leona Koźmińskiego w Warszawie Poland

Oskar Kowalewski

redakcja@bfg.pl

Affiliation:
Instytut Ekonomiczny PAN Poland

Łukasz Kozłowski

redakcja@bfg.pl

Affiliation:
Akademia Leona Koźmińskiego w Warszawie Poland