Nexus of governance, macroeconomic conditions, and financial stability of banks: a comparison of developed and emerging countries

IF 6.9 1区经济学 Q1 BUSINESS, FINANCE

Financial Innovation Pub Date : 2024-01-19 DOI:10.1186/s40854-023-00542-x

Saif Ullah, Atta Ullah, Mubasher Zaman

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Abstract

The study aims to explore the impact of governance and macroeconomic conditions on financial stability in developed and emerging countries. The study sample comprised 122 countries from 2013 to 2020, and a comprehensive set of variables was used to construct the financial stability index (FSI). The results of the two-step system GMM analysis, robust with D–K regression, indicate that interest rate, GDP growth, voice and accountability, political stability and absence of violence/terrorism, government effectiveness, regulatory quality, and control of corruption have a positive and statistically significant impact on financial stability. However, inflation, money supply, and the rule of law have adverse and insignificant effects on financial stability. Notably, the findings vary between developed and emerging countries due to differences in governance and macroeconomic conditions and their role in financial stability. The study concludes that regulatory governance and macroeconomic conditions are crucial for financial stability. These outcomes are significant for central banks, academia, and policymakers, as they emphasize the need for stable financial systems and sustainable, balanced growth through governance and macroeconomic conditions.

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银行治理、宏观经济条件和金融稳定性的关联：发达国家与新兴国家的比较

本研究旨在探讨发达国家和新兴国家的治理和宏观经济条件对金融稳定性的影响。研究样本包括 2013 年至 2020 年的 122 个国家，并采用了一套综合变量来构建金融稳定指数（FSI）。两步系统 GMM 分析结果表明，利率、GDP 增长、发言权和问责制、政治稳定和无暴力/恐怖主义、政府效率、监管质量和腐败控制对金融稳定有积极的统计意义上的影响。然而，通货膨胀、货币供应量和法治对金融稳定性有不利影响，且影响不明显。值得注意的是，由于治理和宏观经济条件及其在金融稳定中的作用不同，发达国家和新兴国家的研究结果也不尽相同。研究得出结论，监管治理和宏观经济条件对金融稳定至关重要。这些结果对中央银行、学术界和政策制定者意义重大，因为它们强调了通过治理和宏观经济条件实现稳定的金融体系和可持续均衡增长的必要性。

本文章由计算机程序翻译，如有差异，请以英文原文为准。

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来源期刊

Financial Innovation Economics, Econometrics and Finance-Finance

CiteScore

11.40

自引率

11.90%

发文量

审稿时长

5 weeks

期刊介绍： Financial Innovation (FIN), a Springer OA journal sponsored by Southwestern University of Finance and Economics, serves as a global academic platform for sharing research findings in all aspects of financial innovation during the electronic business era. It facilitates interactions among researchers, policymakers, and practitioners, focusing on new financial instruments, technologies, markets, and institutions. Emphasizing emerging financial products enabled by disruptive technologies, FIN publishes high-quality academic and practical papers. The journal is peer-reviewed, indexed in SSCI, Scopus, Google Scholar, CNKI, CQVIP, and more.