Article

Politicization, banking experience and risk in savings banks

Journal ar
European Journal of Law and Economics
  • Volumen: 38
  • Número: 3
  • Fecha: 01 December 2014
  • Páginas: 535-553
  • ISSN: 15729990 09291261
  • Source Type: Journal
  • DOI: 10.1007/s10657-012-9377-5
  • Document Type: Article
  • Publisher: Kluwer Academic Publishers barbara.b.bertram@gsk.com
© 2012, Springer Science+Business Media New York. During the global financial crisis, criticism of the politicization and lack of professionalization of the savings banks has taken a central position in the political debate. The aim of this article is to analyze if the political presence of governing bodies in Spanish savings banks has been reflected in their various risk-taking behaviors before and during the financial crisis. We will also analyze whether the influence of the chairman¿s banking experience matters. The results do not provide evidence that the composition of the boards of savings bank, or even their politicization, have played a role. However we show that savings banks run by a chairman with previous banking experience are likely to be significantly more solvent and less volatile.

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