Regulatory Policy Uncertainty, Financial Innovations, and the Performance of Financial Institutions among Emerging Markets

Rexford Abaidoo and Elvis Kwame Agyapong

Global Journal of Emerging Market Economies, 2025, vol. 17, issue 2, 163-179

Abstract: This study examines the impact of regulatory policy uncertainty and financial innovations on the performance of financial institutions among emerging economies from sub-Saharan Africa (SSA) from 2004 to 2020. The study employs the pooled ordinary least squares (POLS) with Driscoll and Kraay’s (1998) standard errors in examining the various interactions specified in the objectives. Results from the analysis suggest that regulatory policy uncertainty negatively influences the performance of financial institutions among sampled economies in the study. Further results show that financial innovations tend to augment the performance of financial institutions, all things being equal. Again, reported findings show that effective governance alone may not be enough to negate the adverse effect of regulatory policy uncertainty on the performance of financial institutions in the subregion. JEL Classification C33, G18, G2, G28

Keywords: Financial innovations; regulatory policy uncertainty; financial institution performance; pooled ordinary least squares with Driscoll and Kraay’s (1998) standard errors (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:sae:emeeco:v:17:y:2025:i:2:p:163-179

DOI: 10.1177/09749101241287293

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