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Financial Stability: Does Social Activism Matter?

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  • Ozili, Peterson K

Abstract

We investigate the impact of social activism on financial system stability. Financial stability was analysed from two complementary perspectives: bank-led financial stability and financial system stability driven by sector-wide credit supply. Social activism was analysed from three perspectives: gender equality advocacy, environmental sustainability advocacy, and social protection advocacy. The findings reveal that gender equality and environmental sustainability advocacy have significant positive effects for financial stability while social protection advocacy has a significant negative effect for financial stability. Also, social activism has negative effects for financial stability in the post-2008 financial crisis era. Finally, there are differential effects for country-groups, for instance, social activism strongly improves bank-led financial stability in African countries and for BLEND countries (countries that are eligible for IDA borrowing based on per capita income levels and are also creditworthy for some borrowing from the International Bank of Restructuring and Development (IBRD). The findings are relevant for the on-going debate about whether social inclusivity and activism has any economic value for the stability of businesses and the financial system. The findings have implications

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  • Ozili, Peterson K, 2019. "Financial Stability: Does Social Activism Matter?," MPRA Paper 92192, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:92192
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    Cited by:

    1. Ozili, Peterson K, 2019. "Determinants of Banking Stability in Nigeria," MPRA Paper 94092, University Library of Munich, Germany.
    2. Ozili, Peterson K, 2020. "Social inclusion and financial inclusion: international evidence," MPRA Paper 101811, University Library of Munich, Germany.
    3. Ozili, Peterson K, 2023. "Can social inclusion policies promote financial inclusion?," MPRA Paper 116971, University Library of Munich, Germany.

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    More about this item

    Keywords

    Financial stability; financial institutions; gender equality; environmental sustainability; social activism; advocacy;
    All these keywords.

    JEL classification:

    • 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
    • H31 - Public Economics - - Fiscal Policies and Behavior of Economic Agents - - - Household
    • H32 - Public Economics - - Fiscal Policies and Behavior of Economic Agents - - - Firm
    • M14 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - Corporate Culture; Diversity; Social Responsibility

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