Political stability, geopolitical risks, and bank stability
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Tarih
2025
Yazarlar
Dergi Başlığı
Dergi ISSN
Cilt Başlığı
Yayıncı
Academic Press Inc Elsevier Science
Erişim Hakkı
info:eu-repo/semantics/openAccess
Özet
Banking fragility in developing countries often stems from political instability and geopolitical risks. Referring collectively to both risks as foundational risks, this paper examines the impact of these risks on bank stability in developing countries. We employ panel quantile regressions and uncover that foundational risks exert asymmetric effects across the distribution of bank soundness. An increase in political stability and a reduction in geopolitical risks significantly strengthen banks' resilience, particularly among the most vulnerable banks. Moreover, a rise in foundational risks intensifies fragility without triggering systemic collapse. These findings offer a fresh perspective for regulators seeking targeted resilience strategies in uncertain political and geopolitical landscapes.
Açıklama
Anahtar Kelimeler
Bank stability, Political stability, Geopolitical risks, Panel quantile regression
Kaynak
Finance Research Letters
WoS Q Değeri
Q1
Scopus Q Değeri
Q1
Cilt
86
