The Impact of Bank Competition and Institutional Quality on Bank Stability: International Evidence

Yudaruddin Rizky, Ulfah Yana and Lesmana Dadang
Additional contact information
Yudaruddin Rizky: Faculty of Economics and Business, Mulawarman University, Samarinda, Indonesia Mulawarman
Ulfah Yana: Faculty of Economics and Business, Mulawarman University, Samarinda, Indonesia Mulawarman
Lesmana Dadang: Research and Development Agency, East Kutai, Indonesia

Economic Alternatives, 2024, issue 4, 767-780

Abstract: This study aims to determine the effects of bank competition and institutional quality on bank stability. It also intends to examine the impact of competition and institutional quality on bank stability. The System Generalized Method of Moments (SYS-GMM) is used to analyze the sample, which comprises 127 countries selected from 79 developing and 48 developed countries from 1993 to 2017, based on the Global Financial Development and Worldwide Governance Indicators. The results show that competition has a negative effect, especially in developed countries. On the other hand, the institutional quality index significantly and positively influences bank stability. Furthermore, competition and institutional quality significantly affect bank stability, particularly in developed countries. This implies that increasing institutional quality encourages higher competition, improving bank stability.

Keywords: Bank Stability; Bank Competition; Institutional Quality (search for similar items in EconPapers)
JEL-codes: G20 G21 G23 O17 (search for similar items in EconPapers)
Date: 2024
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://www.unwe.bg/doi/eajournal/2024.4/EA.2024.4.04.pdf (application/pdf)

Related works:
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:nwe:eajour:y:2024:i:4:p:767-780

Access Statistics for this article

More articles in Economic Alternatives from University of National and World Economy, Sofia, Bulgaria Contact information at EDIRC.
Bibliographic data for series maintained by Vanya Lazarova ().