Country-level cryptocurrency uncertainty and bank cost of capital
利用63个国家2009至2023年的银行数据，研究发现国家层面的加密货币不确定性会降低银行的资本成本，且对竞争较低的银行影响更大。
• Employed data of 11,485 bank-year observations of 63 countries. • Cryptocurrency uncertainty is associated with a reduction in banks’s cost of capital. • Results are robust to alternative proxies and controls for endogeneity. • The effect is more pronounced for banks with low competition. • Banks with high interest margin are less sensitive to cryptocurrency uncertainty. This study explores the impact of country-level cryptocurrency uncertainty on bank cost of capital, utilizing data from 63 countries over the period of 2009 to 2023. Our findings indicate that cryptocurrency uncertainty is associated with a reduction in banks’ cost of capital. This result remains robust using alternative proxies and controlling for endogeneity concerns. Additionally, we document that the impact is more pronounced for banks with low market competition, and high interest margin. These results provide valuable insights for policymakers and industry practitioners regarding the implications of cryptocurrency uncertainty on financial institutions.