Institutional quality and bank instability: cross-countries evidence in emerging countries

Zina Essid, Younes Boujelbene and Dominique Plihon

MPRA Paper from University Library of Munich, Germany

Abstract: This paper highlights the relevant role of the quality of institutions in maintaining banking stability. Poor institutions constitute the key determinants in explaining the emergence of banking crises. An empirical study of 52 emerging and / or developing countries from 1996 to 2009 finds that banking instability is widely associated with a variety of macroeconomic, financial and ,particularly, institutional factors. Our main conclusion stipulates that the strengthening of institutional quality is an essential condition to ensure banking stability. Political stability, voice and accountability, and respect for the rule and law are relevant institutional characteristics in particular.

Keywords: quality of institutions; supervision and prudential regulation schemes; bank instability; Logit technique; emerging and / or developing countries. (search for similar items in EconPapers)
JEL-codes: G0 G01 O1 O5 (search for similar items in EconPapers)
Date: 2014-05-27
New Economics Papers: this item is included in nep-ban and nep-reg
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (7)

Downloads: (external link)
https://mpra.ub.uni-muenchen.de/56251/1/MPRA_paper_56251.pdf original version (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:pra:mprapa:56251

Access Statistics for this paper

More papers in MPRA Paper from University Library of Munich, Germany Ludwigstraße 33, D-80539 Munich, Germany. Contact information at EDIRC.
Bibliographic data for series maintained by Joachim Winter ().