Banking stability across income, legal origin, supervisory regimes & geographies
Added Title
Banking stability across income, legal origin, supervisory regimes and geographies
College
Ramon V. Del Rosario College of Business
Document Type
Archival Material/Manuscript
Publication Date
2015
Abstract
We examine the effects of government guarantees on banking stability of private, state and foreign owned banks for several heterogeneities such as income level, legal origin, supervisory control and geography. We find that state owned banks in high income countries are observed to be in a more stable condition compared to counterparts in low income countries. Private owned banks in common legal origin countries emerge to be more stable than private owned banks in other legal origins. State banks in countries where the Central Bank is the sole supervisor are observed to be more stable compared to their counterparts in other supervisory regimes. However, foreign banks are in a better position in countries with multiple supervisory regimes. In general, foreign banks in Asia and Africa are observed to be performing considerably better compared to their American and European counterparts. The diverse results we observe for each geographic region, stress the importance of region specific tailoring of banking regulations, especially given the recent financial crisis.
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Recommended Citation
Agarwal, S., & Jayasuriya, D. (2015). Banking stability across income, legal origin, supervisory regimes & geographies. Retrieved from https://animorepository.dlsu.edu.ph/faculty_research/6739
Disciplines
Finance and Financial Management
Keywords
Banks and banking
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Note
Presented at the SIBR-RDINRRU 2015 conference on Interdisciplinary Business and Economics Research, July 2-3, 2015, Osaka, Japan