Too-Big-to-Fail Status and Interest Costs of Banks : the Evidence from Central European Countries
The article explores whether the TBTF status influences interest costs reported by banks in Central European countries. We use a comprehensive dataset covering the period from 1994 to 2009 and the different methods of identifying TBTF banks. After controlling for other determinants of interest costs, we find very little evidence that the big banks in Central European countries incur lower interest costs. Our results are robust to the changes in the estimation procedures. (original abstract)
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