 Systemic risk in European banks: Does ownership structure matter?Nadia Saghi, Zainab Srour, Jean-Laurent Viviani and Mohamad Jezzini The Quarterly Review of Economics and Finance, 2023, vol. 92, issue C, 88-111 Abstract: We empirically test whether ownership concentration explains the cross-variation in systemic risk contribution for a sample of European banks over the 2004–2021 period and how this effect may vary depending on the category of the largest controlling shareholder. We explore two potential contagion channels: the risk-taking incentives and banks’ assets commonality. The results show that higher ownership concentration is associated with greater banks’ systemic risk contribution. Moreover, we find that banks’ systemic risk contribution is even stronger for banks where institutional investors or States are the largest controlling owners. Overall, our findings contribute to the literature examining the determinants of banks’ systemic risk in particular and financial stability as a whole and have several policy implications. Keywords: European banking; Ownership structure; Systemic risk contribution (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:eee:quaeco:v:92:y:2023:i:c:p:88-111 DOI: 10.1016/j.qref.2023.07.009 Access Statistics for this article The Quarterly Review of Economics and Finance is currently edited by R. J. Arnould and J. E. Finnerty More articles in The Quarterly Review of Economics and Finance from Elsevier |
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