Financial structure, financial development and banking fragility: International evidence
AbstractWe study the effects of financial structure and financial development on banking fragility. We develop our study by using fixed-effects panel-data regressions and by controlling the effects of certain banking indicators. We use individual and principal-components indicators of the activity, size and efficiency of intermediaries and markets. The indicators include data for 211 countries between 1990 and 2003. Our main findings suggest that banking stability is enhanced in market-based financial systems. Financial development reduces it. However this fragility-enhancing effect can be unveiled only when we account for financial structure. Thus, financial structure and development jointly matter to assess banking fragility.
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Bibliographic InfoPaper provided by University Library of Munich, Germany in its series MPRA Paper with number 12124.
Date of creation: 12 Dec 2008
Date of revision:
Banks; fragility; financial structure; financial development;
Find related papers by JEL classification:
- N20 - Economic History - - Financial Markets and Institutions - - - General, International, or Comparative
- E44 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Financial Markets and the Macroeconomy
- G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
This paper has been announced in the following NEP Reports:
- NEP-ALL-2008-12-21 (All new papers)
- NEP-BAN-2008-12-21 (Banking)
- NEP-BEC-2008-12-21 (Business Economics)
- NEP-CFN-2008-12-21 (Corporate Finance)
- NEP-EFF-2008-12-21 (Efficiency & Productivity)
- NEP-MAC-2008-12-21 (Macroeconomics)
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