Dynamic Impact of Banking Performance on Financial Stability: Fresh Evidence from Southeastern Europe

Zeqiraj, Veton; Mrasori, Flamur; İskenderoğlu, Ömer; Sohag, Kazi

doi:10.2478/jcbtp-2021-0008

Cited by 18 publications

(9 citation statements)

References 28 publications

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“…In Southeast European countries, factors such as rapid credit growth, inflation, and current account deficits contribute to financial stability challenges (Winkler & Beck, 2021). EU enlargement, stability pacts, and reforms in these countries are significant contributors to financial stability (Mehl & Winkler, 2004;Zeqiraj et al, 2021). Furthermore, banking sector performance, investment, and trade openness positively influence economic growth, underscoring the importance of sound financial systems (Zeqiraj et al, 2021).…”

Section: Literature Reviewmentioning

confidence: 99%

Assessing financial stability in Southeast Europe (SEE): An econometric perspective

Zhuja,

Hoti,

Qehaja

et al. 2024

Multidiscip. Sci. J.

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In the last decade, the global financial landscape, including Southeast Europe's eleven diverse economies, has been significantly impacted by multiple financial crises. These crises have led to economic downturns, unemployment spikes, and unstable financial structures. This study investigates financial stability and risks in Southeast Europe from 2012 to 2021, focusing on Albania, Bosnia and Herzegovina, Bulgaria, Cyprus, Montenegro, Greece, Croatia, North Macedonia, Kosovo, Serbia, and Turkey. It aims to identify factors influencing financial stability amid distinct economic challenges posed by global crises. Utilizing the Financial Stability Index (FSI) as the dependent variable, alongside the Banking Stability Index (BSI), inflation rate, GDP, and public debt as independent variables, the research employs data from the World Bank and The Global Economy. Analysis through STATA software and methods like OLS, OLSR, FE, RE, and GMM reveals the critical role of banking in financial stability, with a robust BSI positively impacting it, while inflation poses additional risks. The study advises Southeast European policymakers to prioritize banking stability and economic growth to enhance financial stability, while also managing inflation and public debt to reduce future financial risks. Our findings suggest that a one-unit increase in the BSI is associated with a 3.35-unit increase in the FSI, highlighting the banking sectors significant influence on regional financial stability. High public debt levels, conversely, are found to correspond with reduced financial stability, with a strong negative correlation of -0.634 between FSI and public debt. These findings underscore the importance of robust banking systems and sound fiscal policies in maintaining financial stability in the face of economic adversities.

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Section: Literature Reviewmentioning

confidence: 99%

Assessing financial stability in Southeast Europe (SEE): An econometric perspective

Zhuja,

Hoti,

Qehaja

et al. 2024

Multidiscip. Sci. J.

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“…They are called hybrid organizations aiming to achieve a double bottom line – the social performance to serve low-income households and the financial performance to sustain and scale up the outreach (Widiarto and Emrouznejad, 2015). Among the other factors such as competition (Hossain et al , 2020), capital structure (Parvin et al , 2020), governance (Mia, 2022) and financial stability (Zeqiraj et al , 2021), regulation has been a crucial factor influencing the performance of financial institutions (D’Espallier et al , 2017; Mustapha et al , 2021; Zeqiraj et al , 2017; Zeqiraj et al , 2022).…”

Section: Regulations and Their Impactsmentioning

confidence: 99%

Regulatory non-compliances in microfinance operations: a survey of Indian microfinance institutions

Sangwan

Nayak

Sangwan

2023

JFRC

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Purpose Regulation is critical for sustainable microfinance sector growth. Under this premise, the study aims to examine the different regulatory noncompliance (RNC) practices prevalent in the operations of microfinance institutions (MFIs) at the ground level. Design/methodology/approach Both the quantitative and qualitative (observations, interviews and focus group discussions) techniques are used to extract the findings. Findings The study highlights the different RNC practices exercised by the loan officers at the field level in their microfinance loan disbursements. Originality/value This study is based on the primary data collected from microfinance clients. The arguments put forth for the RNC practices are extracted from direct personal interviews with the loan officers and the clients. The role of various dilemmas/circumstances of the loan officers and the beneficiaries that implicate the MFIs in RNC is highlighted.

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“…Many previous scholars have focused on exploring the determinants of interest income (Yuksel et al, 2018;Khan and Jalil, 2020;Yusuf et al, 2021). Many focused on the stability nexus of financial institutions, and that is kept in view the performance measures (Gadanecz, and Jayaram, 2008;Raza et al, 2011;Alqahtani and Mayes, 2018;Zeqiraj et al, 2021) explicitly concerning Islamic banking (Cihak and Hesse, 2010;Shahid and Abbas, 2012;Rashid et al, 2017;Berger et al, 2019). Others highlighted that single performance-based measures do not provide enough evidence regarding tanking stability (Ali and Puah, 2018;Duho et al, 2019).…”

Section: Introductionmentioning

confidence: 99%

Financial stability nexus of Islamic banks: an influential and intellectual science mapping structure

Asif

Nasir

2023

JIABR

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Purpose This study aims to provide a comprehensive bibliometric investigation of the antecedents to financial stability in Islamic banking, a transition economy with a volatile stock market focusing on banks following the Shariah approach. Design/methodology/approach The data for this analysis was extracted from the Scopus database, which combines a comprehensively crafted abstract and citation database with augmented data and linked scholarly works across various disciplines. It quickly finds relevant research and provides access to reliable data and analytical tools. This study deploys “bibliometrix 3.0,” a biblioshiny R-package for influential structure and the VOS viewer for intellectual structure. Findings The investigation’s main findings revealed that 1,910 documents were published from 1987 to 2022. Published manuscripts received 39,050 citations, with an average of 10.18 citations per year. However, the instructed empirical research was experienced during 2009 and 2020, while earlier periods (1987–2008) were relatively inactive where banking was considered protective in the presence of BASEL-II capital accords regulations. While the International Journal of Bank Market has been at the top of the list to publish articles related to the area under investigation, the Journal of Banking and Finance is ranked one of the most cited articles. Malaysia has been at the top of the list of countries to research Islamic Sharia compliance principles in the banking industry, and International Islamic University Malaysia has produced enough evidence in this regard. The intellectual structure provided essential foundations for future research, and the bibliometric coupling approach was used. Practical implications While most of the banking research has been conducted to determine the banking business efficiency, risk and profitability, little focus is given to financial stability and that too concerning the Islamic banks. Therefore, researchers need to investigate this horizon from an Islamic banking point of view and focus on key issues that discriminate between Islamic and conventional banks in determining their stability level. Originality/value Briefly, to the best of the authors’ knowledge, this study would be the first to provide bibliometric information about financial stability keeping in view the sample data from banks with the Shariah approach. Furthermore, the proven analysis demonstrates a novel contribution that financially stable Islamic banks might strengthen the financial industry and overall economy.

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Dynamic Impact of Banking Performance on Financial Stability: Fresh Evidence from Southeastern Europe

Cited by 18 publications

References 28 publications

Assessing financial stability in Southeast Europe (SEE): An econometric perspective

Assessing financial stability in Southeast Europe (SEE): An econometric perspective

Regulatory non-compliances in microfinance operations: a survey of Indian microfinance institutions

Financial stability nexus of Islamic banks: an influential and intellectual science mapping structure

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