<abstract xmlns="http://www.w3.org/1999/xhtml">

<p>This study explores the effect of regulatory governance on financial stability using cross-sectional data from 55 countries. The findings show that regulatory governance and various subcomponents of regulatory governance are positively correlated with financial stability in the selected countries. The results, based on the ordinary least square method, explain that the regulatory governance has a significant positive influence on financial stability in the selected countries. Further, concerning different dimensions of regulatory governance, it is showed that an individual impact of all components on financial stability is positive except for the strength of external audit, and supervisory independence and accountability. However, central bank`s independence and economic independence have a statistically significant effect on financial stability, whereas central bank accountability, supervisory independence and accountability, political central bank independence as well as the strength of external audit have an insignificant statistical influence on financial stability. Finally, the study concludes that regulatory governance and individual dimension of regulatory governance played the most significant role in improving financial stability in the selected countries.</p>
</abstract>

This study explores the effect of regulatory governance on financial stability using cross-sectional data from 55 countries. The findings show that regulatory governance and various subcomponents of regulatory governance are positively correlated with financial stability in the selected countries. The results, based on the ordinary least square method, explain that the regulatory governance has a significant positive influence on financial stability in the selected countries. Further, concerning different dimensions of regulatory governance, it is showed that an individual impact of all components on financial stability is positive except for the strength of external audit, and supervisory independence and accountability. However, central bank`s independence and economic independence have a statistically significant effect on financial stability, whereas central bank accountability, supervisory independence and accountability, political central bank independence as well as the strength of external audit have an insignificant statistical influence on financial stability. Finally, the study concludes that regulatory governance and individual dimension of regulatory governance played the most significant role in improving financial stability in the selected countries.

Role of Regulatory Governance in Financial Stability: A Comparison of High and Low Income Countries

Journal of Central Banking Theory and Practice

This work is licensed under the Creative Commons Attribution 4.0 International License.

This study explores the effect of regulatory governance on financial stability using cross-sectional data from 55 countries. The findings show that regulatory...

Role of Regulatory Governance in Financial Stability: A Comparison of High and Low Income Countries

Published Online: Jan 18, 2022

Page range: 207 - 226

Received: Jul 28, 2020

Accepted: Nov 12, 2020

DOI: https://doi.org/10.2478/jcbtp-2022-0009

Keywords
Regulatory Governance, Financial Stability, Selected countries

© 2022 Saif Ullah et al., published by Sciendo

This work is licensed under the Creative Commons Attribution 4.0 International License.

Role of Regulatory Governance in Financial Stability: A Comparison of High and Low Income Countries

Published Online: Jan 18, 2022

Page range: 207 - 226

Received: Jul 28, 2020

Accepted: Nov 12, 2020

DOI: https://doi.org/10.2478/jcbtp-2022-0009

KeywordsRegulatory Governance, Financial Stability, Selected countries

© 2022 Saif Ullah et al., published by Sciendo

This work is licensed under the Creative Commons Attribution 4.0 International License.

Keywords
Regulatory Governance, Financial Stability, Selected countries