The Effect of Ownership Structure on Financial Stability: An Empirical Investigation

2012 ◽  
Author(s):  
Mónica LopezPuertas-Lamy ◽  
Oscar Gutierrez
Keyword(s):  
Ownership Structure ◽  
Financial Stability ◽  
Empirical Investigation

scholarly journals Corporate governance and bank performance: Does ownership matter? Evidence from the Kenyan banking sector

2007 ◽  
Vol 4 (2) ◽  
pp. 133-142 ◽  
Author(s):  
Dulacha G. Barako ◽  
Greg Tower
Keyword(s):  
Corporate Governance ◽  
Financial Institutions ◽  
Ownership Structure ◽  
Financial Stability ◽  
Banking Sector ◽  
Bank Performance ◽  
Government Ownership ◽  
Statistical Justification ◽  
African Context ◽  
Institutional Shareholders

This paper provides an empirical analysis of banks performance in Kenya. The primary purpose of this study is to investigate the association between ownership structure characteristics and bank performance. Data utilised in the study is collected from the Financial Institutions Department of the Central Bank of Kenya, both on-site inspection reports and off-site surveillance records. Empirical results indicate that ownership structure of banks significantly influence their financial performance. In particular, board and government ownership are significantly and negatively associated with bank performance, whereas foreign ownership is strongly positively associated with bank performance, and institutional shareholders have no impact on the performance of financial institutions in Kenya. The study makes a significant contribution to financial research by extending examination of banks performance to a developing country context beyond the usual confines of the developed western economies, and adds to the small number of similar studies in the African context. The results are consistent with prior research findings, and more importantly, presents statistical justification for pursuing further corporate governance reforms with respect to banks’ ownership structure to enhance the financial stability of the sector

scholarly journals The Impact of Banking Competition on Economic Growth and Financial Stability: An Empirical Investigation

2021 ◽  
Vol 10 (1) ◽  
pp. 203
Author(s):  
George Abuselidze
Keyword(s):  
Economic Growth ◽  
Monetary Policy ◽  
Central Bank ◽  
Financial Stability ◽  
Empirical Investigation ◽  
Banking System ◽  
Economic Sector ◽  
Banking Competition ◽  
Banking Market ◽  
The Impact

The paper examines the level of competition in banking market using different econometric models and analyzes the impact of efficiency of the banking system on the economic growth of the country. The research discusses to ensure banking competition as a function of the Central Bank. Also, the paper includes some recommendations developed to improve banking competition. Our hypothesis is that the existence of high levels of banking competition and low concentration in the banking market balances the speed of money supply in the economic sector. As a result, the Central Bank's monetary policy will be more effective in achieving its core objectives. Therefore, banking competition contributes to the economic growth of the country. In addition, the monetary policy of the Central Bank concentrates on financial stability, which is one of the fundamental factors in the economic development of a country.

How do banks’ capital regulation and risk-taking respond to COVID-19? Empirical insights of ownership structure

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Syed Moudud-Ul-Huq ◽  
Kawsar Ahmed ◽  
Mohammad Ashraful Ferdous Chowdhury ◽  
Hafiz M. Sohail ◽  
Tanmay Biswas ◽  
...  
Keyword(s):  
Ownership Structure ◽  
Risk Taking ◽  
Financial Stability ◽  
Generalized Method Of Moments ◽  
Capital Regulation ◽  
Data Set ◽  
Content Type ◽  
Private Banks ◽  
Three Stage Least Squares ◽  
The Relationship

Purpose This study aims to investigate the relationship between capital regulation and risk-taking behavior (financial stability) concerning the impacts of the recent global (COVID-19) crisis and diverse ownership structure. Design/methodology/approach The analysis uses an unbalanced panel data set from 32 commercial banks of Bangladesh for 2000–2020. The authors use the two-step system generalized method of moments and three-stage least squares to produce the study outcomes. Findings The robust results reveal that the relationship between capital regulation and risk (financial stability) is negative (positive) and bi-directional. More significantly, COVID-19 makes banks fragile and demands more capital to absorb risk. However, the effect of COVID-19 is heterogeneous when the authors consider ownership structure. Among the diverse ownership styles, Islamic and active shareholding show their controlling wheel on capital regulation and risk-taking aptitude (financial stability) during the global (COVID-19) crisis. In normal economic conditions, private banks and minority active shareholding can be a good determinant for capital regulation and risk (financial stability). On the other hand, state-owned and large banks have been found as less capitalized and highly risky. Originality/value This study is the pioneer in exploring capital regulation and risk toward the recent global (COVID-19) crisis.

scholarly journals An Empirical Investigation on Corporate Governance: Evidence from Pakistan

2020 ◽  
Vol V (III) ◽  
pp. 154-161
Author(s):  
Ghulam Nabi ◽  
Faheem Ghaznafar ◽  
Tahira Asif
Keyword(s):  
Corporate Governance ◽  
Firm Performance ◽  
Board Of Directors ◽  
Ownership Structure ◽  
Empirical Investigation ◽  
Stock Exchange ◽  
Annual Reports ◽  
Tobin’S Q ◽  
Tobin's Q ◽  
The Board Of Directors

This study aims to examine the association between firm performance and ownership structure. We collect the data from the annual reports of 60 random firms, which are listed in the Karachi stock exchange (KSE 100 Index), for a period of 5 years from 2007-2011. Firm performance is measured by using market and accounting based proxies, Tobin's Q, ROA, and ROE, respectively, while ownership structure is measured as a percentage of shares held by the Board of Directors. The findings reveal that ownership structure has a negative and significant association with firm performance (accounting-based proxy).

scholarly journals The Relationship Between Concentration of the Banking Sector in Poland and Its Soundness

e-Finanse ◽  
2017 ◽  
Vol 12 (4) ◽  
pp. 43-57
Author(s):  
Karolina Wojcicka
Keyword(s):  
Ownership Structure ◽  
Financial Stability ◽  
Quantitative Research ◽  
Banking Sector ◽  
Banking System ◽  
International Banking ◽  
Real Economy ◽  
Consolidation Process ◽  
Polish Economy ◽  
The Relationship

Abstract Each year assets of the banking sector in Poland increase and thereby its significance in the real economy increases as well. At the same time, the ongoing consolidation process and changes in the ownership structure cause the Polish banking sector to play a substantial role not only on the local financial market, but on the European market as well and Polish banks are becoming more and more significant entities in their international banking groups (both in Europe and worldwide). However, the perspective of concentration increase and restriction of the Polish banking sector to a few operating banks (dominated by entities with foreign capital) is a source of distress in the context of its soundness - and due to its significance in the Polish economy - to the whole financial sector and real economy. The main goal of this article is to analyse the changes of concentration in the banking sector in Poland, including the ownership concentration, while attempting to determine its soundness (using the financial stability ratios method). The purpose of the study is also to prove a thesis that limited concentration with diversification of the ownership structure and its limited concentration favours thesoundness of a banking system. The study was carried out on the basis of an analysis of literature (both Polish and English) and comparative analysis (of the concentration of the Polish banking sector against other European countries). Qualitative analysis was complemented with quantitative research, based on analysis of statistical data.

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