Financial Consumer Protection and the Cost of Financial Intermediation: Evidence from Advanced and Developing Economies

References

• Agarwal S, Chomsisengphet S, Mahoney N, Stroebel J (2015) Regulating consumer financial products: Evidence from credit cards. Quart. J. Econom. 130(1):111–164.Crossref, Google Scholar
• Agarwal S, Lucca D, Seru A, Trebbi F (2014) Inconsistent regulators: Evidence from banking. Quart. J. Econom. 129(2):889–938.Crossref, Google Scholar
• Akinbami F (2011) Financial services and consumer protection after the crisis. Internat. J. Bank Marketing 29(2):134–147.Crossref, Google Scholar
• Alliance for Financial Inclusion (2011) Maya Declaration: The AFI network commitment to financial inclusion, September 30, http://www.afi-global.org/sites/default/files/publications/Maya%20Declaration_2011.pdf.Google Scholar
• Ardic OP, Heimann M, Mylenko N (2011) Access to financial services and the financial inclusion agenda around the world: A cross-country analysis with a new data set. Policy Research Working Paper 5537, World Bank, Washington, DC.Crossref, Google Scholar
• Barth JR, Caprio G, Levine R (2001) The regulation and supervision of banks around the world: A new database. Litan RE, Herring R, eds. Integrating Emerging Market Countries Into the Global Financial System (Brookings-Wharton Papers in Financial Services, Brooking Institution Press, Washington, DC), 183–240.Crossref, Google Scholar
• Barth JR, Caprio G Jr, Levine R (2004) Bank regulation and supervision: What works best? J. Financial Intermediation 13(2):205–248.Crossref, Google Scholar
• Barth JR, Caprio G Jr, Levine R (2012) The evolution and impact of bank regulations. Policy Research Working Paper 6288, World Bank, Washington, DC.Crossref, Google Scholar
• Barth JR, Dopico LG, Nolle DE, Wilcox JA (2002) Bank safety and soundness and the structure of bank supervision: A cross-country analysis. Internat. Rev. Finance 3(3–4):163–188.Crossref, Google Scholar
• Barth JR, Nolle DE, Phumiwasana T, Yago G (2003) A cross-country analysis of the banks supervisory framework and bank performance. Financial Markets, Institutions and Instruments 12(2):67–120.Crossref, Google Scholar
• Beck N (2001) Time-series cross-section data: What have we learned in the past few years? Annual Rev. Political Sci. 4:271–293.Crossref, Google Scholar
• Beck T, Demirgüç-Kunt A, Levine R (2006) Bank supervision and corruption in lending. J. Monetary Econom. 53(8):2131–2163.Crossref, Google Scholar
• Benston GJ (2000) Consumer protection as justification for regulating financial-services firms and products. J. Financial Services Res. 17(3):277–301.Crossref, Google Scholar
• Briault C (2002) Revisiting the rationale for a single national financial services regulator. Occassional Paper Series 16, Financial Services Authority, London. http://www.fsa.gov.uk/pubs/occpapers/op16.pdf.Google Scholar
• Brix L, McKee K (2010) Consumer protection regulation in low-access environments: Opportunities to promote responsible finance. Focus Note 60, Consultative Group to Assist the Poor, Washington, DC. https://www.cgap.org/sites/default/files/CGAP-Focus-Note-Consumer-Protection-Regulation-in-Low-Access-Environments-Opportunities-to-Promote-Responsible-Finance-Feb-2010.pdf.Google Scholar
• Campbell JY, Jackson HE, Madrian BC, Tufano P (2011) Consumer financial protection. J. Econom. Perspect. 25(1):91–114.Crossref, Google Scholar
• Cihak M, Demirgüç-Kunt A, Peria MSM, Mohseni-Cheraghlou A (2012) Bank regulation and supervision around the world: A crisis update. Policy Research Working Paper 6286, World Bank, Washington, DC.Crossref, Google Scholar
• Consultative Group to Assist the Poor and The World Bank Group (2010) Financial access 2010: The state of financial inclusion through the crisis. Report, CGAP and The World Bank Group, Washington DC. https://www.cgap.org/sites/default/files/CGAP-Financial-Access-2010.pdf.Google Scholar
• Delis M, Molyneux P, Pasiouras F (2011) Regulations and productivity growth in banking: Evidence from transition economies. J. Money, Credit Banking 43(4):735–764.Crossref, Google Scholar
• Delis MD, Staikouras PK, Tsoumas C (2017) Formal enforcement actions and bank behavior. Management Sci. 63(4):959–987.Link, Google Scholar
• Demirgüç-Kunt A, Huizinga H (1999) Determinants of commercial bank interest margins and profitability: Some international evidence. World Bank Econom. Rev. 13(2):379–408.Crossref, Google Scholar
• Demirgüç-Kunt A, Detragiache E, Tressel T (2008) Banking on the principles: Compliance with basel core principles and bank soundness. J. Financial Intermediation 17(4):511–542.Crossref, Google Scholar
• Demirgüç-Kunt A, Laeven L, Levine R (2004) Regulations, market structure, institutions, and the cost of financial intermediation. J. Money, Credit Banking 36(3):593–622.Crossref, Google Scholar
• Diamond DW, Verrecchia RE (1991) Disclosure, liquidity, and the cost of capital. J. Finance 46(4):1325–1359.Crossref, Google Scholar
• Dietrich A, Wanzenried G, Cole RA (2010) Why are net-interest margins across countries so different? Mimeo, Lucerne University of Applied Sciences and Arts, Switzerland. http://ssrn.com/abstract=1542067.Google Scholar
• Elliehausen G, Kurtz RD (1998) Scale economies in compliance costs for federal consumer credit regulations. J. Financial Services Res. 1(1):147–159.Google Scholar
• Elliehausen G, Lowery BR (1997) The cost of implementing consumer financial regulations: An analysis of experience with the truth in savings act. Staff Studies 170, Board of Governors of the Federal Reserve System, Washington, DC. https://www.federalreserve.gov/pubs/staffstudies/1990-99/ss170.pdf.Google Scholar
• Elliehausen G, Lowery BR (2000) The costs of implementing regulatory changes: The truth in savings act. J. Financial Services Res. 17(2):165–179.Crossref, Google Scholar
• European Banking Authority (EBA) (2012) Financial innovation and consumer protection: An overview of the objectives and work of the EBA’s Standing Committee on Financial Innovation (SCFI) in 2011–2012, Report, EBA, London.Google Scholar
• European Banking Authority (EBA) (2013) Report on consumer trends: Supervisory concerns regarding consumer protection issues in 2012/13, Report, EBA, London.Google Scholar
• European Parliament (2014) Consumer protection aspects of financial services. Directorate General for Internal Policies, Policy Department A: Economic and Scientific Policy, IP/A/IMCO/ST/2013-07, PE 507.463, Study. http://www.europarl.europa.eu/RegData/etudes/etudes/join/2014/507463/IPOL-IMCO_ET(2014)507463_EN.pdf.Google Scholar
• Ferran E (2011) The break-up of the financial services authority. Oxford J. Legal Stud. 31(3):455–480.Crossref, Google Scholar
• Financial Stability Board (2011) Consumer Finance Protection with particular focus on credit, October 26, http://www.fsb.org/wp-content/uploadsvr_111026a.pdf.Google Scholar
• Fornell C, Wernerfelt B (1987) Defensive marketing strategy by customer complaint management: A theoretical analysis. J. Marketing Res. 24(4):337–346.Crossref, Google Scholar
• Francis JR, Khurana IK, Pereira R (2005) Disclosure incentives and effects on cost of capital around the world. Accounting Rev. 80(4):1125–1162.Crossref, Google Scholar
• Gaganis C, Pasiouras F (2013) Financial supervision regimes and bank efficiency: International evidence. J. Banking Finance 37(12):5463–5475.Crossref, Google Scholar
• Gurun UG, Matvos G, Seru A (2016) Advertising expensive mortgages. J. Finance 71(5):2371–2416.Crossref, Google Scholar
• Hallowell R (1996) The relationships of customer satisfaction, customer loyalty, and profitability: An empirical study. Internat. J. Service Indust. Management 7(4):27–42.Crossref, Google Scholar
• Hart SL (1995) A natural resource based view of the firm. Acad. Management Rev. 20(4):986–1014.Crossref, Google Scholar
• Hart CWL, Heskett JL, Sasser EW Jr (1990) The profitable art of service recovery. Harvard Bus. Rev. 68(July–August):148–156.Google Scholar
• Hattori K, Higashida K (2014) Misleading advertising and minimum quality standards. Inform. Econom. Policy 28:1–14.Crossref, Google Scholar
• HM Treasury (2010) A new approach to financial regulation: Judgment, focus and stability. Presented to Parliament by Command of Her Majesty, The Stationery Office Limited. https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/81389/consult_financial_regulation_condoc.pdf.Google Scholar
• Ho TSY, Saunders A (1981) The determinants of bank interest margins: Theory and empirical evidence. J. Financial Quant. Anal. 16(4):581–600.Crossref, Google Scholar
• Houston JF, Lin C, Ma Y (2012) Regulatory arbitrage and international bank flows. J. Finance 67(5):1845–1895.Crossref, Google Scholar
• Inderst R, Ottaviani M (2012) How (not) to pay for advice: A framework for consumer financial protection. J. Financial Econom. 105(2):393–411.Crossref, Google Scholar
• Karolyi A, Taboada AG (2015) Regulatory arbitrage and cross-border bank acquisitions. J. Finance 70(6):2395–2450.Crossref, Google Scholar
• King M (2010) Speech at the Lord Mayor’s Banquet for Bankers and Merchants of the City of London at the Mansion House on June 16, 2010. http://www.bankofengland.co.uk/archive/Documents/historicpubs/speeches/2010/speech437.pdf.Google Scholar
• Kopalle PK, Lehmann DR (2015) The truth hurts: How customers may lose from honest advertising. Internat. J. Res. Marketing 32(3):251–262.Crossref, Google Scholar
• Kranz DF, Lechner M, Rodriguez-Planas N (2015) A note on difference-in-difference estimation by Fixed Effects and OLS when there is panel non-response. Discussion Paper 2015-07, University of St. Gallen, St. Gallen, Switzerland.Google Scholar
• Laeven L, Levine R (2009) Bank governance, regulation and risk taking. J. Financial Econom. 93(2):259–275.Crossref, Google Scholar
• Lee J, Hogarth JM (1999) The price of money: Consumers’ understanding of APRs and contract interest rates. J. Public Policy Marketing 18(1):66–76.Crossref, Google Scholar
• Lepetit L, Nys E, Rous P, Tarazi A (2008) The expansion of services in European banking: Implications for loan pricing and interest margins. J. Banking Finance 32(11):2325–2335.Crossref, Google Scholar
• Levesque T, McDougall GHG (1996) Determinants of customer satisfaction in retail banking. Internat. J. Bank Marketing 14(7):12–20.Crossref, Google Scholar
• Llewellyn DT (1995) Consumer protection in retail investment services: Protection against what? J. Financial Regulation Compliance 3(1):43–54.Crossref, Google Scholar
• Lucca D, Seru A, Trebbi F (2014) The revolving door and worker flows in banking regulation. J. Monetary Econom. 65(July):17–32.Crossref, Google Scholar
• Maudos J, de Guevara JF (2004) Factors explaining the interest margin in the banking sectors of the European Union. J. Banking Finance 28(9):2259–2281.Crossref, Google Scholar
• Miller M, Godfrey N, Levesque B, Stark E (2009) The case for Financial literacy in developing countries: Promoting access to finance by empowering consumers, World Bank, DFID, OECD, and CGAP joint note, World Bank, Washington, DC.Google Scholar
• Ongena S, Popv A, Udell GF (2013) When the cat’s away the mice will play: Does regulation at home affect bank risk-taking abroad? J. Financial Econom. 108(3):727–750.Crossref, Google Scholar
• Organisation for Economic Co-operation and Development (2011) G20 high-level principles on financial consumer protection. Published principles of the OECD, France. https://www.oecd.org/g20/topics/financial-sector-reform/48892010.pdf.Google Scholar
• Parliamentary Commission on Banking Standards (2013) Changing banking for good. Report of the Parliamentary Commission on Banking Standards, The Stationery Office by Order of the House, London. http://www.parliament.uk/documents/banking-commission/Banking-final-report-vol-ii.pdf.Google Scholar
• Pasiouras F (2008) International evidence on the impact of regulations and supervision on banks’ efficiency: An application of two-stage data envelopment analysis. Rev. Quant. Finance Accounting 30(2):187–223.Crossref, Google Scholar
• Pasiouras F, Gaganis C (2013) Regulations and soundness of insurance firms: International evidence. J. Bus. Res. 66(5):632–642.Crossref, Google Scholar
• Pasiouras F, Tanna S, Zopounidis C (2009) The impact of banking regulations on banks’ cost and profit efficiency: Cross-country evidence. Internat. Rev. Financial Anal. 18(5):294–302.Crossref, Google Scholar
• Pitofsky R (1977) Beyond Nader: Consumer protection and the regulation of advertising. Harvard Law Rev. 90(4):661–701.Crossref, Google Scholar
• Poghosyan T (2013) Financial intermediation costs in low income countries: The role of regulatory, institutional, and macroeconomic factors. Econom. Systems 37(1):92–110.Crossref, Google Scholar
• Qiu Y, Shaukat A, Tharyan R (2016) Environmental and social disclosures: Link with corporate financial performance. British Accounting Rev. 48(1):102–116.Crossref, Google Scholar
• Román S (2003) The impact of ethical sales behaviour on customer satisfaction, trust and loyalty to the company: An empirical study in the financial services industry. J. Marketing Management 19(9–10):915–939.Crossref, Google Scholar
• Román S, Ruiz S (2005) Relationship outcomes of perceived ethical sales behavior: The customer’s perspective. J. Bus. Res. 58(4):439–445.Crossref, Google Scholar
• Russo MV, Fouts PA (1997) A resource-based perspective on corporate environmental performance and profitability. Acad. Management J. 40(3):534–559.Crossref, Google Scholar
• Rutledge SL (2010) Consumer protection and financial literacy—Lessons from nine country studies. Policy Research Working Paper 5326, World Bank, Washington, DC.Crossref, Google Scholar
• Saunders A, Schumacher L (2000) The determinants of bank interest rate margins: An international study. J. Internat. Money Finance 19(6):813–832.Crossref, Google Scholar
• Smith JF (1977) The equal credit opportunity act of 1974: A cost/Benefit analysis. J. Finance 32(2):609–622.Crossref, Google Scholar
• Soedarmono W, Tarazi A (2013) Bank opacity, intermediation cost and globalization: Evidence from a sample of publicly traded banks in Asia. J. Asian Econom. 29:91–100.Crossref, Google Scholar
• Sovern J (2006) Toward a new model of consumer protection: The problem of inflated transaction costs. William Mary Law Rev. 47(5):1635–1709.Google Scholar
• Spicer A, Gond JP, Patel K, Lindley D, Fleming P, Mosonyi S, Benoit C, Parker S (2014) A report on the culture of British retail banking. Joint report by New City Agenda and Cass Business School City University London, http://newcityagenda.co.uk/wp-content/uploads/2014/11/Last-ever-version.pdf.Google Scholar
• Stango V, Zinman J (2014) Limited and varying consumer attention: Evidence from shocks to the salience of bank overdraft fees. Rev. Financial Stud. 27(4):990–1030.Crossref, Google Scholar
• Taylor M (1995) “Twin peaks”: A regulatory structure for the new century. CSFI paper, Centre for the Study of Financial Innovation, London. https://static1.squarespace.com/static/54d620fce4b049bf4cd5be9b/t/55241159e4b0c8f3afe1d11e/1428427097907/Twin+Peaks+A+regulatory+structure+for+the+new+century.pdf.Google Scholar
• Trinugroho I, Agusmanb A, Tarazi A (2014) Why have bank interest margins been so high in Indonesia since the 1997/1998 financial crisis? Res. Internat. Bus. Finance 32(August):139–158.Crossref, Google Scholar
• Vallascas F, Hagendorff J (2013) The risk sensitivity of capital requirements: Evidence from an international sample of large banks. Rev. Finance 17(6):1947–1988.Crossref, Google Scholar
• World Bank (2012) Good practices for financial consumer protection. Report, World Bank, Washington, DC.Google Scholar
• World Bank (2014) Global survey on consumer protection and financial literacy: Oversight frameworks and practices in 114 economies. Report, World Bank, Washington DC.Google Scholar