Financial structure, financial development and banking fragility: International evidence

Antonio Ruiz-Porras

MPRA Paper from University Library of Munich, Germany

Abstract: We study the effects of financial structure and financial development on banking fragility. We develop our study by using fixed-effects panel-data regressions and by controlling the effects of certain banking indicators. We use individual and principal-components indicators of the activity, size and efficiency of intermediaries and markets. The indicators include data for 211 countries between 1990 and 2003. Our main findings suggest that banking stability is enhanced in market-based financial systems. Financial development reduces it. However this fragility-enhancing effect can be unveiled only when we account for financial structure. Thus, financial structure and development jointly matter to assess banking fragility.

Keywords: Banks; fragility; financial structure; financial development (search for similar items in EconPapers)
JEL-codes: E44 G21 N20 (search for similar items in EconPapers)
Date: 2008-12-12
New Economics Papers: this item is included in nep-ban, nep-bec, nep-cfn, nep-eff and nep-mac
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4)

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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:12124

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