1. bookVolume 11 (2022): Edizione 1 (January 2022)
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eISSN
2336-9205
Prima pubblicazione
11 Mar 2014
Frequenza di pubblicazione
3 volte all'anno
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Inglese
access type Accesso libero

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

Pubblicato online: 18 Jan 2022
Volume & Edizione: Volume 11 (2022) - Edizione 1 (January 2022)
Pagine: 207 - 226
Ricevuto: 28 Jul 2020
Accettato: 12 Nov 2020
Dettagli della rivista
License
Formato
Rivista
eISSN
2336-9205
Prima pubblicazione
11 Mar 2014
Frequenza di pubblicazione
3 volte all'anno
Lingue
Inglese
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.

Keywords

JEL Classification

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