Volume 8, Issue 4 (fall 2013)                   J. Mon. Ec. 2013, 8(4): 137-157 | Back to browse issues page

XML Print

Download citation:
BibTeX | RIS | EndNote | Medlars | ProCite | Reference Manager | RefWorks
Send citation to:

Khakpoor Moghadam A. Economic Freedom and Banking Stability in Selected Countries. J. Mon. Ec. 2013; 8 (4) :137-157
URL: http://jme.mbri.ac.ir/article-1-171-en.html
Abstract:   (3505 Views)

This paper investigates the role of economic freedom in banking stability by using a panel data set for the period 1998-2013 in 43 selected countries. We turn our investigation to the effects of economic freedom on banking stability. The effects of economic freedom on financial stability are estimated. This paper calculates the z-score measure for banking stability. The findings from this study seem to suggest that overall economic freedom has positive impacts on the banking stability in the selected countries. The positive sign of the coefficient indicates that higher (lower) freedom on the activities that banks can undertake increases (reduces) banks’ stability, which is consistent with the view that less regulatory control allows banks to engage in various activities enabling banks to exploit economies of scale and make income from non-traditional sources. Furthermore, higher freedom on entrepreneurs helps to start businesses and job creation and consequently, increases intermediation performance which increases banks’ stability.

Full-Text [PDF 356 kb]   (2160 Downloads)    
Type of Study: Original Research - Theoric | Subject: Economics
Received: 25 Jun 2016 | Accepted: 25 Jun 2016 | Published: 25 Jun 2016

Add your comments about this article : Your username or Email:

Rights and permissions
Creative Commons License This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.

© 2023 All Rights Reserved | Journal of Money And Economy

Designed & Developed by : Yektaweb