Banking industry stability and investment dynamics

IF 2 Q2 BUSINESS, FINANCE

Journal of Financial Regulation and Compliance Pub Date : 2021-11-30 DOI:10.1108/jfrc-06-2021-0049

Rexford Abaidoo, Elvis Kwame Agyapong

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引用次数: 1

Abstract

Purpose This paper aims to evaluate how strands of differing investments influence stability in the banking industry using data from 37 countries in Sub-Sahara Africa from 2000 to 2018. Design/methodology/approach Empirical analyses in the study were carried out using a two-step system Generalized Method of Moments estimation methodology. Findings Empirical results suggest that generally, growth in investments by governments, foreign investments and private domestic investments have a significant positive impact in stabilizing the banking industry. The empirical estimates further suggest that macroeconomic conditions such as macroeconomic uncertainty adversely affects the liquid reserve position of banks even during periods of appreciable growth in investments. Originality/value The authors present a different approach to the banking industry discourse. Instead of surmise the relationship with the direction of impact often emanating from the banking industry to other variables of interest or conditions, this study rather examines how investment dynamics among economies influence the stability of the banking industry overtime. In contrast to related studies, this study examines how strands of investment variables influence the stability of the banking industry. Specifically, this study is modeled to examine the extent to which variability in investment growth (using different investment variables) affect stability in the banking industry.

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银行业稳定性和投资动态

目的本文旨在利用2000年至2018年撒哈拉以南非洲37个国家的数据，评估不同投资链如何影响银行业的稳定性。设计/方法/方法使用两步系统广义矩估计方法进行了研究中的实证分析。发现实证结果表明，总体而言，政府投资、外国投资和国内私人投资的增长对稳定银行业具有重大积极影响。实证估计进一步表明，宏观经济不确定性等宏观经济条件对银行的流动准备金状况产生了不利影响，即使在投资显著增长的时期也是如此。独创性/价值作者对银行业话语提出了不同的看法。本研究没有猜测通常来自银行业的影响方向与其他利益或条件变量之间的关系，而是考察了经济体之间的投资动态如何随着时间的推移影响银行业的稳定性。与相关研究相反，本研究考察了投资变量链如何影响银行业的稳定性。具体而言，本研究旨在检验投资增长的可变性（使用不同的投资变量）对银行业稳定性的影响程度。

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

Journal of Financial Regulation and Compliance BUSINESS, FINANCE-

CiteScore

2.60

自引率

11.10%

发文量

期刊介绍： Since its inception in 1992, the Journal of Financial Regulation and Compliance has provided an authoritative and scholarly platform for international research in financial regulation and compliance. The journal is at the intersection between academic research and the practice of financial regulation, with distinguished past authors including senior regulators, central bankers and even a Prime Minister. Financial crises, predatory practices, internationalization and integration, the increased use of technology and financial innovation are just some of the changes and issues that contemporary financial regulators are grappling with. These challenges and changes hold profound implications for regulation and compliance, ranging from macro-prudential to consumer protection policies. The journal seeks to illuminate these issues, is pluralistic in approach and invites scholarly papers using any appropriate methodology. Accordingly, the journal welcomes submissions from finance, law, economics and interdisciplinary perspectives. A broad spectrum of research styles, sources of information and topics (e.g. banking laws and regulations, stock market and cross border regulation, risk assessment and management, training and competence, competition law, case law, compliance and regulatory updates and guidelines) are appropriate. All submissions are double-blind refereed and judged on academic rigour, originality, quality of exposition and relevance to policy and practice. Once accepted, individual articles are typeset, proofed and published online as the Version of Record within an average of 32 days, so that articles can be downloaded and cited earlier.