Małgorzata Iwanicz-Drozdowska

• Ph.D.
• Professor (Full) at SGH Warsaw School of Economics

Jednym z wielu zadań banków, jako instytucji zaufania publicznego, jest zapewnienie bezpiecznego dostępu do usług bankowych. Jest to szczególnie trudne obecnie, ze względu na obserwowaną wysoką dynamikę zmian czynników rynkowych i regulacyjnych oraz postęp technologiczny. Zmiany te wpływają na postrzeganie banków oraz wpływają na ich konkurencyjnoś...

We examine how generations X, Y, and Z might react to market-moving events over short- and long-term horizons to maintain an optimal balance among risk, return, and investor preferences. To analyze various portfolio variants, we use data on selected global assets and several types of economic and non-economic events for 2000-2021H1, applying the me...

This study evaluates the scope and consequences of the application of new technologies (NTs) within the Polish banking and insurance sectors and thus contributes to the knowledge of CEE financial market development. The goal is to understand the implementation of particular NTs in two different sectors and identify the motivations, strategies, phas...

Purpose This paper aims to evaluate the role of depositor-specific features in a bank resolution. As the resolution framework in the EU is rather new, there are no empirical studies referring to the efficiency of this mechanism in protecting financial stability. Thus, the authors have checked the role of societal awareness of deposit guarantee sche...

We investigate the determinants that link financial knowledge and literacy with the openness to using modern technologies for financial education. To achieve this aim, we conducted computer-assisted telephone interviews with 500 Polish citizens and found that the level of openness to innovation in financial education depended on the respondents’ ed...

Purpose The parent-subsidiary nexus has been explored since the mid-1990s, but the extent to which subsidiaries resemble their parents remains unclear. Therefore, this study examines the performance drivers for subsidiary banks in emerging markets and their parents to determine the similarities between these groups. The findings could help identify...

This study evaluates the impact of a negative interest rate policy (NIRP) on systemic risk, covering a wide range of economies over a relatively long term. Monetary policy affects banks’ vulnerability to systemic risk events and the likelihood of triggering such events, particularly among institutions connected via the contagion network. With a ris...

The purpose of this study is to evaluate the safety of individuals’ behaviour in the cyber world, especially when using financial services. The article focuses on knowledge of cybersecurity issues, cyber risk awareness and respondents’ self-assessment as potential determinants of individual behaviour. The data obtained from a survey of a representa...

Post-global financial crisis (GFC) regulatory overhauls – where uniform solutions were adopted for various types of banks – have significantly changed the environment in which banks operate. This is especially visible in the European banking industry, whose profitability has not recovered to pre-GFC levels. Therefore, our goal is to investigate whe...

In this study, we analyze the probability of bank failure, the expected losses, and the costs of bank restructuring with the application of a lognormal distribution probability function for three categories of European banks, that is, small, medium, and large, over the post-crisis period from 2012 to 2016. Our goal was to determine whether the tota...

This study aims to investigate the impact of a wide range of economic and non-economic events on stock market spillover effects in a group of 16 major developed and emerging countries over the 2000–2020 period. We analyse the size and structure of contagion to verify how different events spread contagion across borders and sectors. We applied the m...

The global financial crisis (GFC) has shown that monetary policy focused on a stable price level may negatively affect the stability of the financial system. Therefore, achieving price and financial stability using interest rates as the main tool is difficult. In this paper, we analyse how often monetary policy strengthened imbalances in the financ...

In this paper, we analyse the determinants of credit growth for banks operating in 20 countries in the post-communist Central, Eastern and South-Eastern Europe (CESEE). We focus on foreign-owned banks and the parent-subsidiary nexus against the background of all banks operating in this part of Europe. Our goal is to determine whether the macroecono...

This study investigates whether characteristics of bank-firm relationships influence zero-leverage (ZL) behavior of SMEs. We analyze both supply- and demand-side explanations for the ZL phenomenon. Using a new and comprehensive data set on Polish SMEs, we confirm the leading role of factors related to loan supply in shaping firms’ ZL strategies. Ho...

We investigate how group- and market-specific traits impact the credit policy of foreign-owned banks operating in Central, Eastern and South-Eastern European (CESEE) countries over the 1995–2015 period using an instrumental variable fixed effects approach. This period includes the years of the global financial crisis (GFC), during which the Vienna...

This study compares the accuracy and efficiency of five different estimation methods for predicting financial distress of small and medium-sized enterprises. We apply different methods for a large set of financial and non-financial variables, using filter and wrapper selection, to predict bankruptcy up to 10 years before the event in an open, Europ...

In this study we focus on distress events of European banks over the period of 1990–2015, using unbalanced panel of 3,691 banks. We identify 132 distress events, which include actual bankruptcies as well as bailout cases. We apply CAMEL‑like bank‑level variables and control macroeconomic variables (GDP, inflation, unemployment rate). The analysis i...

Based on a sample of 14 Central, Eastern and Southeastern European (CESEE) countries during the period between 1995 and 2015, we analyse how foreign-owned banks and foreign trade impact economic growth. To date, studies have concentrated on the interlinkages between different forms of foreign bank presence (cross-border flows, branches, subsidiarie...

This book provides an in-depth analysis of the role of foreign-owned banks for credit growth, financial stability and economic growth in the post-communist European countries. Using data covering 20 countries over the period from 1995 to 2015, the authors analyse the evolution of banking sectors in CESEE after the transformation in the historical c...

This chapter characterizes the stability of banking sectors in the CESEE countries before, during, and after the global financial crisis, while focusing on the role played by foreign-owned banks. The starting point is the analysis of the impact of the crisis in the region, as well as the policy and regulatory responses aimed at containing the effec...

In this chapter we analyse the credit activity of banks in the CESEE countries, with special attention paid to the foreign-owned banks. We start our empirical analysis with the determinants of the credit growth, focusing next on the procyclicality of credit activities. Foreign-owned banks are analysed against the background of other banks operating...

This chapter reviews the theoretical and empirical literature which links economic growth to the role and characteristics of the financial system. Among these characteristics, relevant to CESEE countries, stand the presence of foreign-owned banks and their activities in the host market. The chapter starts with a review of the main findings of the f...

This paper explores the finance–growth nexus in 14 countries from Central, Eastern and South-eastern Europe (CESEE) over the 1995–2015 period. It investigates whether including two ‘non-standard’ variables, i.e. a credit cycle dummy and foreign bank relevance, deepens our understanding of the role of a typical financial determinant of economic grow...

We tested the reliability of different versions of the Z-score and CAMELS-based financial strength indices (aggregated from bank-level data) in detecting periods of banking crisis on a sample of 20 Central, Eastern, and Southeastern European (CESEE) countries during 1995–2014. We demonstrated that the predictive power of both types of accounting-ba...

We investigate how the presence of local banks affects the prospects of troubled small and medium-sized enterprises (SMEs). Using a new dataset covering the years 2006–2015, we find evidence supporting the notion that local banks extend a helping hand to SMEs and act in this role efficiently. We establish that SMEs operating in regions where local...

This paper sheds some new light on banks’ distress in Europe, with special attention paid to the period of the global financial crisis (GFC). Unlike in previous research we investigate non-distress (“glory”) and distress (“shame”) paths of banks from 1 to 4 years prior to a distress event to test how different they are. This approach allows us to o...

The author reviews the EU financial supervisory and regulatory architecture which was introduced in 2010 as a response to the global financial crisis. The aim of this paper is to discuss the gaps identified in the financial safety net, as well as the decisions made by policymakers to strengthen financial regulation and supervision. Special attentio...

Kapitał zagraniczny odgrywa istotną rolę w sektorach bankowych krajów Europy Środkowej, Wschodniej i Południowej (EŚWP). Globalny kryzys finansowy unaocznił, że kapitał zagraniczny – oprócz pozytywnego wpływu – może stanowić kanał transmisji szoków do krajów goszczących. Badaniem roli kapitału zagranicznego dla stabilności finansowej i rozwoju gosp...

The history of the CESEE has been stormy over time. Its strategic geographical location and the policy of conquest by neighbouring countries, such as Austria, Prussia, Russia, and Turkey, have significantly impacted the development of societies and economies of CESEE. After World War II, the CESEE countries found themselves behind the Iron Curtain...

In this final chapter, we outline—against the background of our research—the winners of foreign banks’ presence. We also point out what would be needed to assess the impact even more deeply and comprehensively. However, the data needed for this purpose are not publicly available for the entire period of our analysis. Therefore, we are aware of the...

We investigate whether foreign ownership in the banking sector is a key determinant of its stability in Central, Eastern and South-Eastern European (CESEE) countries, as there is no consensus in the current literature on emerging markets. To this end, we introduce a financial strength index (FSI) as a proxy for financial stability. We used binary r...

W podręczniku przedstawione zostały podstawowe zasady, rozwią-zania i regulacje dotyczące sektora bankowego oraz zmieniające się dynamicznie jego oblicze. Nawiązano też do konsekwencji globalne-go kryzysu finansowego zapoczątkowanego w 2007 roku. W czterech częściach omówiono kolejno: • System bankowy, jego relacje z otoczeniem, elementy warun-kują...

This paper assesses the classification performance of the Z-Score model in predicting bankruptcy and other types of firm distress, with the goal of examining the model's usefulness for all parties, especially banks that operate internationally and need to assess the failure risk of firms. We analyze the performance of the Z-Score model for firms fr...

The aim of the research was to analyze financial system development patterns for both 19 post-communist and 21 non-post-communist counties over the 1995–2014 period. The use of a factor analysis allowed us to identify two unobservable factors. Those factors account for most of the variance of the nine observed variables characteristic of the econom...

This study focuses on the role of financial development in the economic growth of Central, Eastern and South-Eastern European (CESEE) countries in the post-communist era (1995–2014), which coincides with the opening up of financial markets to foreign investors and the global financial crisis. We investigate whether economic growth in CESEE countrie...

W niniejszym artykule dokonano analizy czynników wzrostu akcji kredytowej banków działających w Polsce w latach 1995–2014, ze szczególnym uwzględnieniem typu własności (banki państwowe, banki będące własnością kapitału zagranicznego, banki będące własnością kapitału krajowego prywatnego), jak również okresu przed i po wystąpieniu globalnego kryzysu...

This paper investigates differences between banking systems in 19 post-communist countries and in 21 developed ones, covering the period from 1995 to 2014. The analysis encompasses the size, the ownership structure, the concentration and CAMELS- -based ratios, as well as the evolution of the financial safety net. Although the banking systems in pos...

Reviews of financial distress prediction models indicate that these techniques give highly reliable estimates of probabilities of default only for relatively short horizons, rarely exceeding two years. This is particularly the case when financial variables make up the sole estimate or primary estimates. So far, bank managers have focused on the one...

Although the issue of determinants of the credit growth is not new in the literature, we re-examine this issue, taking into account some novel variables, such as the crisis dummy, the financial safety net (FSN) index and the ruling party dummies. In this study we analyse the credit growth in 20 countries from Central, Eastern and South-Eastern Euro...

We test the impact of announcements of the list of global systemically important banks by the Financial Stability Board on the systemic importance of these banks. To this end we estimate the Systemic Importance Index introduced by Zhou (2010) for 110 banks, including global systemically important banks, over the period 1991-2014. For each bank we c...

Restructuring; State aid; Bailout; Resolution

Purpose: The goal of the paper is to analyse the determinants of the level of ROE (return on equity) for two groups of banks, interrelated by capital links, and their banking sectors. Methodology: For the case study, we chose companies that, in 2011–2013, were designated by the Financial Stability Board as global systemically important banks (G-SIB...

We empirically analyse the costs of bank restructuring measures undertaken in the EU countries during the recent global financial crisis under the state aid framework. With a unique dataset from over 80 bank case studies in 2008-2014, we model the determinants of bailout costs and rank the cost of each tool applied. We have found that the most impo...

In this paper, we investigate the credit growth of foreign-owned banks in Central, Eastern, and South-Eastern Europe from 2000 to 2014. We intend to show whether foreign capital in the banking sector should be treated as a monolith, as it currently is in the literature. To this end, we analyse credit growth based on the status of the parent company...

This chapter presents overall rules for the provision of state aid and the fiscal burden related to that aid. Soon after the collapse of Lehman Brothers, in October 2008, the European Commission issued the so-called ‘first banking communication’ to facilitate the financial support for banks. In 2010, it became necessary to provide financial support...

This chapter describes the restructuring tools applied during the recent crisis to the EU banks and the costs associated with them. The most typical tool was recapitalization, combined also with deep restructuring of a bank or a merger, or a bailout, in other words. Liquidation and nationalization were used rather rarely, mostly in the case of smal...

This chapter presents a brief history of banking crises and restructuring tools, with a particular focus on the recent global financial crisis (GFC). There always are questions about the causes of turmoil in the financial markets; therefore, the chapter explains how the current crisis is different from the previous ones. The conclusions from the re...

This chapter characterizes the changes caused by the recent global financial crisis (GFC). The starting point is the macroeconomic situation combined with the situation in the EU banking sectors. Because the GFC forced the decision-makers to rebuild the financial safety net, the most significant changes for the EU banking sectors have been also ela...

The goal of this paper is to find out whether financial sectors in post-communist countries have managed to catch up with the "world leaders" over the last 20 years. Unlike previous research, this article analyses the beta and the sigma convergence as well as convergence clubs of two indicators of financial development, i e. bank credit to GDP rati...

This book explores the diversity of restructuring instruments applied to financial institutions in EU countries during the Global Financial Crisis. It investigates the cost of that support before evaluating its effects, as well as providing an extensive analysis of the measures undertaken. The first chapter presents a historical outline, discusses...

This study aims to assess the current institutional arrangements of guarantee schemes in three sectors of the financial services industry (banking, insurance and capital market) in EU countries. Using data collected directly from guarantee schemes and other sources, as well as bank balance sheet data, the research focuses on assessing the financial...

Reviews on financial distress prediction models indicate that these techniques give highly reliable estimates of probabilities of default (PDs) and loss given default (LGD) only for relatively short horizons, rarely beyond two years. Major stakeholders, e.g. investors and bank risk and capital analysts, therefore, have such models sanctioned by por...

In this paper we investigate the issues of identification and capital regulation of global systemically important banks (G-SIBs). Both issues are fundamental for global financial stability. However, there are many open questions that remain on the political and academic agenda. We underline that the simple ratiobased solution for the identification...

The ongoing global financial crisis has enhanced the interest in effective regulation as well as the supervision of internationally active and large financial institutions, named as global systematically important financial institutions or banks (G-SIFIs or G-SIBs). In this paper, we address two questions. Firstly, is additional capital enough to p...

The purpose of this paper is firstly to review the literature on the efficacy and importance of the Altman Z-Score bankruptcy prediction model globally and its applications in finance and related areas. This review is based on an analysis of 33 scientific papers published from the year 2000 in leading financial and accounting journals. Secondly, we...

Przed rozpoczęciem globalnego kryzysu finansowego Komisja Europejska (KE) wykazywała duże zainteresowanie problematyką edukacji finansowej i redukowania skali wykluczenia finansowego. Od momentu pojawienia się poważnych problemów na rynku finansowym działania w tym zakresie wydają się niewystarczające. Celem niniejszego artykułu jest analiza i ocen...

The ongoing global financial crisis has enhanced the interest in effective regulation as well as the supervision of internationally active and large financial institutions, named as global systematically important financial institutions or banks (G-SIFIs or G-SIBs). In this paper, we address two questions. Firstly, is additional capital enough to p...

The idea of the article is to present a review of solutions, preventive and/or remedial in character, applied in several developed countries that had to deal with the problem of the over-indebtedness earlier than in Poland. We assumed that the development of the financial knowledge and responsible decision-making process in respect of the debt need...

Wyk­lucze­nie finan­sowe łączy się ściśle z wyk­lucze­niem społecznym i polega na ogranic­zonym dostępie do usług finan­sowych świad­c­zonych przez banki i insty­tucje finan­sowe. Do czyn­ników mają­cych wpływ na wys­tępowanie takiego wyk­luczenia zal­icza się m.in. poziom wyk­sz­tałce­nia, główne źródło dochodów i ich poziom, wiek, oraz miejsce za...

The purpose of this research is to assess the impact of socio-demographic changes on the financial services market in Poland. We conclude, that socio-demographic changes will have an impact on demand side, and will require adjustments on the supply side. Ageing of the society should increase the share of bank deposits, assets linked to life insuran...

On 23 June 2010, the Magyar Nemzeti Bank and SUERF jointly organised a conference on "The Future of Banking in CESEE after the Financial Crisis", incorporating the SUERF Annual Lecture, delivered by Manfred Schepers, Vice President, Finance at the European Bank for Reconstruction and Development, on "The role of domestic financial markets in an int...

W artykule zaprezentowano wyniki badania ankietowego przeprowadzonego metodą CATI na 200 respondentach na przełomie stycznia i lutego 2008 r. Badanie dotyczyło korzystania przez Polaków z usług finansowych. Jak wskazują wyniki badań, Polacy są tradycjonalistami jeśli chodzi o korzystanie z usług finansowych. Z reguły to młodsza część społeczeństwa...

We współczesnej gospodarce rynkowej nie-zbędne jest korzystanie przez gospodarstwa domowe z podstawowych usług finansowych, głównie bankowych, jest niezbędne. Nieko-rzystanie z nich bądź brak dostępu do nich określa się mianem wykluczenia finansowego (financial exclusion). Za pierwszych autorów, którzy użyli tego określenia uznaje się A. Leyshona i...

This survey conducted in Poland was the first in-depth one of non-commercial character. It was conducted in July 2007 on a quota sample covering people in the age bracket 18-75 years. The executed survey confirmed that factors explaining financial exclusion in Poland are the same like for social exclusion. These include: low level of education, ret...