Democracy and Banking Stability: Is the Relationship U-Shaped?

被引:0
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作者
Mohamed Sami Ben Ali
Sami Ben Mim
机构
[1] Qatar University,College of Business & Economics
[2] IHEC,undefined
[3] LaREMFiQ,undefined
[4] University of Sousse,undefined
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关键词
Democracy; Banking crisis; SGMM; Nonlinearity; O17; P48; D73; H12; G33;
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摘要
This study addresses the impact of democracy on the stability of the banking system for a sample of 114 countries over the period 2000–2017. Our findings offer strong evidence for a U-shaped relationship between democracy and banking stability. Results also show that the way democratic institutions impact banking stability is highly dependent on their ability to implement effective anti-corruption policies. Controlling for countries’ income levels reveals that not all high-income countries are necessarily enjoying the positive effects of democracy on banking stability.
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页码:4426 / 4448
页数:22
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