Munich Personal RePEc Archive

Financial structure, financial development and banking fragility: International evidence

Ruiz-Porras, Antonio (2008): Financial structure, financial development and banking fragility: International evidence. Forthcoming in: Analisis Economico

[img]
Preview
PDF
MPRA_paper_12124.pdf

Download (300kB) | Preview

Abstract

We study the effects of financial structure and financial development on banking fragility. We develop our study by using fixed-effects panel-data regressions and by controlling the effects of certain banking indicators. We use individual and principal-components indicators of the activity, size and efficiency of intermediaries and markets. The indicators include data for 211 countries between 1990 and 2003. Our main findings suggest that banking stability is enhanced in market-based financial systems. Financial development reduces it. However this fragility-enhancing effect can be unveiled only when we account for financial structure. Thus, financial structure and development jointly matter to assess banking fragility.

UB_LMU-Logo
MPRA is a RePEc service hosted by
the Munich University Library in Germany.