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Political risk in banks: A review and agenda

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  • Janbaz, Mehdi
  • Hassan, M. Kabir
  • Floreani, Josanco
  • Dreassi, Alberto
  • Jiménez, Alfredo

Abstract

Although political risk in banking has received much more attention in recent years, there is no review that synthesizes these incoherent studies and provides a comprehensive image of the field in the past, present, and future. This paper is a meta-synthesis literature review on political risk in banks over a 35-year period from 1985 to 2019. We summarize the studies on political risk in banks in terms of the underlying theories to highlight the research streams, trends, and thematic structure of the field. By applying bibliometric and content analyses, we identified four main clusters in the literature: (1) political interference in bank lending and its consequences, (2) effects of government and regulatory interventions on bank risk-taking, (3) effects of the institutional and political environment on banking development and performance, and (4) economic models related to political risk in banks. Finally, this study poses 14 questions for future research.

Suggested Citation

  • Janbaz, Mehdi & Hassan, M. Kabir & Floreani, Josanco & Dreassi, Alberto & Jiménez, Alfredo, 2022. "Political risk in banks: A review and agenda," Research in International Business and Finance, Elsevier, vol. 62(C).
    • Handle: RePEc:eee:riibaf:v:62:y:2022:i:c:s0275531922001015
    DOI: 10.1016/j.ribaf.2022.101713
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    More about this item

    Keywords

    Political risk; Banking; Government intervention; Political instability; Political environment;
    All these keywords.

    JEL classification:

    • G15 - Financial Economics - - General Financial Markets - - - International Financial Markets
    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • G28 - Financial Economics - - Financial Institutions and Services - - - Government Policy and Regulation
    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill

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    Access and download statistics

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