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The Determinants of the European Banking Crisis

Author

Listed:
  • Sana Zidi

    (Faculty of Economic Sciences and Management of Tunis, Tunis El Manar University, Tunisia,)

  • Boutheina Regaieg

    (Faculty of Law, Economics and Management of Jendouba, University of Jendouba, Tunisia, Tunisia)

  • Nessrine Hamzaoui

    (Faculty of Economic Sciences and Management of Tunis, Tunis El Manar University, Tunisia,)

Abstract

The fragility of the European banking system in recent years has motivated us to research on the main indicators that weigh on the soundness of its banking institutions and therefore deserves special attention from supervisors. Our study is based on 40 consolidated banking groups from 10 countries in Europe. We used binary logistic regression as an econometric model. We introduced accounting, macroeconomic, regulatory, legal and institutional variables. The results of our study confirm that doubtful credit is the main variable contributing to the birth of the European banking crisis.

Suggested Citation

  • Sana Zidi & Boutheina Regaieg & Nessrine Hamzaoui, 2021. "The Determinants of the European Banking Crisis," International Journal of Economics and Financial Issues, Econjournals, vol. 11(4), pages 115-122.
    • Handle: RePEc:eco:journ1:2021-04-13
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    References listed on IDEAS

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    More about this item

    Keywords

    banking crisis; binary Logit model; legal; regulatory and institutional environment.;
    All these keywords.

    JEL classification:

    • E58 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Central Banks and Their Policies
    • C15 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Statistical Simulation Methods: General
    • P48 - Political Economy and Comparative Economic Systems - - Other Economic Systems - - - Legal Institutions; Property Rights; Natural Resources; Energy; Environment; Regional Studies

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