Economic policy uncertainty and bank stability: Does bank regulation and supervision matter in major European economies?

Motivated by the unprecedented high levels of recent economic policy uncertainty in Europe and the globe, this paper examines the relationship between economic policy uncertainty and bank stability, as well as the conditioning effects of bank regulation and supervision on this relationship. Using a...

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Tác giả chính: Thanh Cong Nguyen
Định dạng: Bài trích
Ngôn ngữ:eng
Nhà xuất bản: Journal of International Financial Markets, Institutions and Money 2021
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Truy cập trực tuyến:https://www.sciencedirect.com/science/article/abs/pii/S1042443121001062?via%3Dihub
https://dlib.phenikaa-uni.edu.vn/handle/PNK/2855
https://doi.org/10.1016/j.intfin.2021.101387
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spelling oai:localhost:PNK-28552022-08-17T05:54:48Z Economic policy uncertainty and bank stability: Does bank regulation and supervision matter in major European economies? Thanh Cong Nguyen Economic policy uncertainty Bank stability Bank regulation and supervision Motivated by the unprecedented high levels of recent economic policy uncertainty in Europe and the globe, this paper examines the relationship between economic policy uncertainty and bank stability, as well as the conditioning effects of bank regulation and supervision on this relationship. Using a sample of more than 950 commercial banks in eight major European countries over the period 2005–2020, economic policy uncertainty has been consistently linked to a sharp decrease in bank stability, once other traditional drivers are controlled for. More importantly, this paper offers important insights into how strengthening bank regulation and supervision, particularly regulations on activity restrictions, capital stringency, official supervisory power, and private monitoring, cushions the adverse effects of policy uncertainty on bank stability. 2021-09-14T07:14:54Z 2021-09-14T07:14:54Z 2021 Bài trích https://www.sciencedirect.com/science/article/abs/pii/S1042443121001062?via%3Dihub https://dlib.phenikaa-uni.edu.vn/handle/PNK/2855 https://doi.org/10.1016/j.intfin.2021.101387 eng Journal of International Financial Markets, Institutions and Money
institution Digital Phenikaa
collection Digital Phenikaa
language eng
topic Economic policy uncertainty
Bank stability
Bank regulation and supervision
spellingShingle Economic policy uncertainty
Bank stability
Bank regulation and supervision
Thanh Cong Nguyen
Economic policy uncertainty and bank stability: Does bank regulation and supervision matter in major European economies?
description Motivated by the unprecedented high levels of recent economic policy uncertainty in Europe and the globe, this paper examines the relationship between economic policy uncertainty and bank stability, as well as the conditioning effects of bank regulation and supervision on this relationship. Using a sample of more than 950 commercial banks in eight major European countries over the period 2005–2020, economic policy uncertainty has been consistently linked to a sharp decrease in bank stability, once other traditional drivers are controlled for. More importantly, this paper offers important insights into how strengthening bank regulation and supervision, particularly regulations on activity restrictions, capital stringency, official supervisory power, and private monitoring, cushions the adverse effects of policy uncertainty on bank stability.
format Bài trích
author Thanh Cong Nguyen
author_facet Thanh Cong Nguyen
author_sort Thanh Cong Nguyen
title Economic policy uncertainty and bank stability: Does bank regulation and supervision matter in major European economies?
title_short Economic policy uncertainty and bank stability: Does bank regulation and supervision matter in major European economies?
title_full Economic policy uncertainty and bank stability: Does bank regulation and supervision matter in major European economies?
title_fullStr Economic policy uncertainty and bank stability: Does bank regulation and supervision matter in major European economies?
title_full_unstemmed Economic policy uncertainty and bank stability: Does bank regulation and supervision matter in major European economies?
title_sort economic policy uncertainty and bank stability: does bank regulation and supervision matter in major european economies?
publisher Journal of International Financial Markets, Institutions and Money
publishDate 2021
url https://www.sciencedirect.com/science/article/abs/pii/S1042443121001062?via%3Dihub
https://dlib.phenikaa-uni.edu.vn/handle/PNK/2855
https://doi.org/10.1016/j.intfin.2021.101387
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score 8.889492