The Impact of Banking Regulation on the Emergence of Crises in Emerging Countries

Asian Economic and Financial Review

article

Rim Mekki¹ 

[1] Higher Institute of Management of Sousse, University of Sousse

关键词: Financial liberalization;    Emerging countries;    Banking crisis;    Bank regulation;    Logit;    Financial fragility.;   

DOI  :  10.18488/journal.aefr.2019.98.901.912

学科分类：社会科学、人文和艺术（综合）

来源: Asian Economic and Social Society

【 摘 要 】

In this study, we analyzed the regulatory, macroeconomic and institutional environmental effects on the probability of the emergence of banking crises in 78 emerging countries that had a fragile banking system in 1997 in a cross-sectional study using a logit model. The empirical examination validates a link between the weakness of certain regulatory and macroeconomic factors and of newly liberalized emerging market banking crises, this study want to examine weakness of regulatory and macroeconomic factors of newly liberalized, etc. banking concentration, restrictions on insurance, the financial market and the real estate sector were not related to the outbreak of banking crises in our estimates. On the basis of results, this study concludes that good regulation leads to bank stability. However, certain restrictions on inappropriate banking activity were the causes of the emergence of banking crises. As a result, the fragility of macroeconomic and institutional factors and the lack of diversification has clearly led to bank fragility and consequently to banking crises.

【 授权许可】

CC BY