The link between international supervision and banking crises
Theoretical and empirical contributions of some economists have shown that a financial liberalisation policy implemented in a less developed institutional environment enhances the proliferation of banking crises. This leads to the conclusion that failure at the level of banking governance plays a si...
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| Format: | Article |
| Language: | English |
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Economists' Association of Vojvodina
2010-01-01
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| Series: | Panoeconomicus |
| Subjects: | |
| Online Access: | http://www.doiserbia.nb.rs/img/doi/1452-595X/2010/1452-595X1003321R.pdf |
| _version_ | 1818394471403880448 |
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| author | Rachdi Houssem |
| author_facet | Rachdi Houssem |
| author_sort | Rachdi Houssem |
| collection | DOAJ |
| description | Theoretical and empirical contributions of some economists have shown that a financial liberalisation policy implemented in a less developed institutional environment enhances the proliferation of banking crises. This leads to the conclusion that failure at the level of banking governance plays a significant role in the emergence of crises. By using multivariate logit, our empirical study samples of 12 emerging countries to study the relationship between banking supervision and banking crises during the period 1980-2003. Our results show a negative and insignificant association between banking regulation and the probability of occurrence of banking crises. We find the likelihood of banking crises is greater in countries with poor banking supervision. In short, the condition required for a sound banking system is to reinforce banking supervision during financial liberalisation phases. |
| first_indexed | 2024-12-14T06:01:44Z |
| format | Article |
| id | doaj.art-e4bdb558590f47beb1648d9061a8a7e8 |
| institution | Directory Open Access Journal |
| issn | 1452-595X |
| language | English |
| last_indexed | 2024-12-14T06:01:44Z |
| publishDate | 2010-01-01 |
| publisher | Economists' Association of Vojvodina |
| record_format | Article |
| series | Panoeconomicus |
| spelling | doaj.art-e4bdb558590f47beb1648d9061a8a7e82022-12-21T23:14:26ZengEconomists' Association of VojvodinaPanoeconomicus1452-595X2010-01-0157332133210.2298/PAN1003321RThe link between international supervision and banking crisesRachdi HoussemTheoretical and empirical contributions of some economists have shown that a financial liberalisation policy implemented in a less developed institutional environment enhances the proliferation of banking crises. This leads to the conclusion that failure at the level of banking governance plays a significant role in the emergence of crises. By using multivariate logit, our empirical study samples of 12 emerging countries to study the relationship between banking supervision and banking crises during the period 1980-2003. Our results show a negative and insignificant association between banking regulation and the probability of occurrence of banking crises. We find the likelihood of banking crises is greater in countries with poor banking supervision. In short, the condition required for a sound banking system is to reinforce banking supervision during financial liberalisation phases.http://www.doiserbia.nb.rs/img/doi/1452-595X/2010/1452-595X1003321R.pdffinancial liberalizationbanking crisesprudential supervision and multivariate logit |
| spellingShingle | Rachdi Houssem The link between international supervision and banking crises Panoeconomicus financial liberalization banking crises prudential supervision and multivariate logit |
| title | The link between international supervision and banking crises |
| title_full | The link between international supervision and banking crises |
| title_fullStr | The link between international supervision and banking crises |
| title_full_unstemmed | The link between international supervision and banking crises |
| title_short | The link between international supervision and banking crises |
| title_sort | link between international supervision and banking crises |
| topic | financial liberalization banking crises prudential supervision and multivariate logit |
| url | http://www.doiserbia.nb.rs/img/doi/1452-595X/2010/1452-595X1003321R.pdf |
| work_keys_str_mv | AT rachdihoussem thelinkbetweeninternationalsupervisionandbankingcrises AT rachdihoussem linkbetweeninternationalsupervisionandbankingcrises |