Do institutions, religion and the economic cycle impact bank stability in dual banking systems?

IF 9.4 3区 管理学 Q1 BUSINESS, FINANCE Journal of International Financial Management & Accounting Pub Date : 2022-01-12 DOI:10.1111/jifm.12146
Eralp Bektas, Marei Elbadri, Philip Molyneux
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引用次数: 12

Abstract

We investigate the relationship of institutional quality, religion, and economic cycles to bank stability using a sample of 254 banks, including Islamic (IBs) and conventional banks (CBs), located in nine countries (QISMUT+3) that follow dual banking systems. We use a comprehensive model and adopt a stronger econometric methodology compared with previous literature. Our findings reaffirm the significant positive influence of institutional quality on bank stability as proxied by a bank's Z-score. Institutional quality variables including financial freedom, voice and accountability, the rule of law, and political stability positively influence bank stability. On the other hand, other institutional quality variables such as economic freedom, government effectiveness, RQ, and corruption negatively affect bank stability. Overall, our empirical evidence shows that IBs are relatively less stable than CBs, due to banking practices, riskier products, and immature legal frameworks. Our analysis also suggests that IBs operate in a similar manner as CBs. New to this study, results suggest that religious orientation has no significant effect on bank stability in our sample countries with dual banking systems. Importantly, we find that the legal system, in particular the Sharià-based legal system, has no significant effect on stability for IBs. Furthermore, customer religiosity measured as the share of Muslim population does not appear to have a differential impact on stability for IBs compared to CBs except when the Muslim share in population exceeds 85%.

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制度、宗教和经济周期是否会影响二元银行体系中的银行稳定性?
我们调查了制度质量、宗教信仰和经济周期与银行稳定性的关系,使用了254家银行的样本,包括伊斯兰银行(ib)和传统银行(CBs),这些银行位于九个实行双重银行体系的国家(QISMUT+3)。与以前的文献相比,我们使用了一个全面的模型,并采用了更强的计量经济学方法。我们的研究结果重申了制度质量对银行稳定性的显著正影响,这是由银行的z分数所代表的。制度质量变量包括财务自由、发言权和问责制、法治和政治稳定对银行稳定性有积极影响。另一方面,其他制度质量变量,如经济自由度、政府有效性、RQ和腐败对银行稳定性产生负面影响。总体而言,我们的经验证据表明,由于银行业务实践、风险产品和不成熟的法律框架,ib相对而言不如cb稳定。我们的分析还表明,ib的操作方式与cb类似。这项研究的新结果表明,在我们的样本国家,宗教取向对双重银行体系的银行稳定性没有显著影响。重要的是,我们发现法律制度,特别是Sharià-based法律制度,对ib的稳定性没有显著影响。此外,除了穆斯林人口比例超过85%外,以穆斯林人口比例衡量的客户宗教虔诚度似乎对ib与cb的稳定性没有差异影响。
本文章由计算机程序翻译,如有差异,请以英文原文为准。
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来源期刊
CiteScore
9.10
自引率
2.00%
发文量
23
期刊介绍: The Journal of International Financial Management & Accounting publishes original research dealing with international aspects of financial management and reporting, banking and financial services, auditing and taxation. Providing a forum for the interaction of ideas from both academics and practitioners, the JIFMA keeps you up-to-date with new developments and emerging trends.
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