EconPapers    
Economics at your fingertips  
 

The impact of national culture on systemic risk

Alin Marius Andries and Daniela Balutel
Authors registered in the RePEc Author Service: Alin Marius Andrieș

Economic Systems, 2022, vol. 46, issue 2

Abstract: We investigate the effects of national culture on systemic risk using a comprehensive dataset from global banks in 58 countries over the period 2003–2016. Our results reveal that systemic risk measures are associated with cultural values. In particular, our results show that individualism and masculinity are the main drivers of banks' contribution to systemic risk. In addition, the impact of cultural variables on the systemic risk measures is nonlinear. This variation may be driven by both information in the national cultural measures and the skewness of the systemic risk measures. The findings have implications for prudential policies: designing uniform prudential and regulatory policies in banking to avoid financial distress for countries with heterogeneous cultures might not have the desire impact; rather, they might be more effective if the type of culture in each individual country is considered.

Keywords: Financial stability; Individualism; Masculinity; National culture; Power distance; Systemic risk (search for similar items in EconPapers)
JEL-codes: D85 G01 G21 (search for similar items in EconPapers)
Date: 2022
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0939362522000346
Full text for ScienceDirect subscribers only

Related works:
Working Paper: The impact of national culture on systemic risk (2022)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:ecosys:v:46:y:2022:i:2:s0939362522000346

DOI: 10.1016/j.ecosys.2022.100972

Access Statistics for this article

Economic Systems is currently edited by R. Frensch

More articles in Economic Systems from Elsevier Contact information at EDIRC.
Bibliographic data for series maintained by Catherine Liu ().

 
Page updated 2024-05-08
Handle: RePEc:eee:ecosys:v:46:y:2022:i:2:s0939362522000346