The impact of conflict and political instability on banking crises in developing countries

Compaoré, Ali; Mlachila, Montfort; Ouedraogo, Rasmané; Sourouema, Sandrine

doi:10.1111/twec.13218

Cited by 12 publications

(7 citation statements)

References 83 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…Firstly, the model employs the probability of default and institutional factors, revealing that political instability leads to banking default in all the models. The result corroborates with the findings of the Zscore models in Table 4 and supports the expectation that banking stability weakens with political uncertainty (Saif-Alyousfi, 2020; Ouedraogo et al ., 2022; Djebali and Zaghdoudi, 2020). Therefore, the MENA countries have to improve political stability to reduce the fragility of the banking industry in the region.…”

Section: The Empirical Results Findings and Discussionsupporting

confidence: 90%

Section: Long-run and Robustness Checkmentioning

confidence: 99%

“…The result backs the theoretical literature of modern law and finance theory that express that high political instability leads to weak financing. The spillover effect can destabilise the region's economy (Ouedraogo et al, 2022;Saif-Alyousfi, 2020). We use the Generalized Least Square (GLS) method to the full sample, GCC and Non-GCC countries split of MENA region (see Table A1), which are considered to check for the robustness of the earlier models.…”

Section: Long-run and Robustness Checkmentioning

confidence: 99%

See 2 more Smart Citations

Probability of default and political instability in the MENA region

Aliyu

Mohammad

Wahab

2023

View full text Add to dashboard Cite

PurposeThis study aims to empirically investigate the impact of political instability on the banking stability of the dual banking system in the Middle East and North African (MENA) countries.Design/methodology/approachThe study measures banking stability with probability of default (PD) and Zscore by employing the generalised method of moment (GMM) between 2007 and 2021 on the dual banking system in the region. The authors further estimate short-long-run situations coupled with a robustness test using a generalised least square (GLS) model.FindingsThe authors' findings indicate that institutional factors of political stability, crisis period, high-crisis countries, law and order and macroeconomic indicators influence the two types of banking stability in the region. The authors found the consistency of the factors explaining stability in the region in both short-and long-run situations. Consequently, the study also reveals the adverse effects of crisis periods and high-crisis countries on banking stability.Practical implicationsThe results of this study explicitly identify the critical need for sustaining political stability and abiding by laws and order to achieve dual banking stability in the region. Therefore, policymakers may consider allowing the region's banks to operate beyond retail banking since diversification enhances banking stability.Originality/valueThe authors' study balances by employing dual stability measurement in predicting the impact of political instability, law and order and other indicators on the MENA region's two banking models. This study uncovers the effect of the global crisis period on banking stability and high-crisis countries in the region and verifies the models' robustness.

show abstract

Section: The Empirical Results Findings and Discussionsupporting

confidence: 90%

Section: Long-run and Robustness Checkmentioning

confidence: 99%

Section: Long-run and Robustness Checkmentioning

confidence: 99%

See 1 more Smart Citation

Probability of default and political instability in the MENA region

Aliyu

Mohammad

Wahab

2023

View full text Add to dashboard Cite

show abstract

“…One advantage of a correlated random-effects model is that it allows for estimation of both within-state and between-state variations in service provision. To construct the model, we followed a process outlined elsewhere in the literature to create variables according to whether they are constant at the state level or not . We then estimated a logistic regression with our control variables and a state random effect.…”

Section: Methodssupporting

confidence: 87%

“…To construct the model, we followed a process outlined elsewhere in the literature to create variables according to whether they are constant at the state level or not. 30 , 31 We then estimated a logistic regression with our control variables and a state random effect. Standard errors were clustered at the state level to account for heteroskedasticity.…”

Section: Methodsmentioning

confidence: 99%

Training in Residency and Provision of Reproductive Health Services Among Family Medicine Physicians

Strasser,

Schenk,

Luo

et al. 2023

JAMA Netw Open

View full text Add to dashboard Cite

ImportanceContraception and abortion services are essential health care, and family medicine (FM) physicians are an important part of the workforce providing this care. Residency could inform the reproductive health services FM physicians provide.ObjectiveTo determine which residency training factors are associated with FM physicians’ provision of reproductive health services to Medicaid beneficiaries.Design, Setting, and ParticipantsThis cross-sectional, population-based observational study of inpatient and outpatient FM physicians who completed residency between 2008 and 2018 and treated at least 1 Medicaid beneficiary in 2019 was conducted from November 2022 to March 2023. The study used 2019 American Medical Association Masterfile and Historical Residency file, as well as the 2019 Transformed Medicaid Statistical Information System claims.ExposuresResidency training in community-based or reproductive health-focused programs.Main Outcomes and MeasuresThe outcomes were providing the following to at least 1 Medicaid beneficiary in 2019: prescription contraception (pill, patch, and/or ring), intrauterine device (IUD) and/or contraceptive implant, and dilation and curettage (D&amp;C). Odds of providing each outcome were measured using correlated random-effects regression models adjusted for physician, residency program, and county characteristics.ResultsIn the sample of 21 904 FM physician graduates from 410 FM residency programs, 12 307 were female (56.3%). More than half prescribed contraception to Medicaid beneficiaries (13 373 physicians [61.1%]), with lower proportions providing IUD or implant (4059 physicians [18.5%]) and D&amp;C (152 physicians [.7%]). FM physicians who graduated from a Reproductive Health Education in Family Medicine program, which fully integrates family planning into residency training, had significantly greater odds of providing prescription contraception (odds ratio [OR], 1.23; 95% CI, 1.07-1.42), IUD or implant (OR, 1.79; 95% CI, 1.28-2.48), and D&amp;C (OR, 3.61; 95% CI, 2.02-6.44). Physicians who completed residency at a Teaching Health Center, which emphasizes community-based care, had higher odds of providing an IUD or implant (OR, 1.51; 95% CI, 1.19-1.91).Conclusions and RelevanceIn this cross-sectional study of FM physicians providing Medicaid service, characteristics of residency training including community-based care and integration of family planning training are associated with greater odds of providing reproductive health services. With growing reproductive health policy restrictions, providing adequate training in reproductive health is critical to maintaining access to care, especially for underserved populations.

show abstract

The impact of new millennium crises on the power of Islamic banks in deposit markets

Alhalboni,

Baldwin

2024

Int. J Fin Econ

View full text Add to dashboard Cite

We investigate the impact of three crises on the power of Islamic banks in deposit markets: the Global Financial Crisis, 2007–2009 (GFC), the Arab Spring political crisis, 2011–2013, and the COVID‐19 health crisis, 2020–2022. Applying difference‐in‐difference (DID) and GMM techniques to panel data for 2004–2022, we find that the power of Islamic banks increased in countries most affected by the GFC, but only for oil‐exporters, as elevated oil prices inflated deposited liquidity. In contrast to the GFC, the market power of countries highly affected by the Arab Spring decreased as depositors withdrew en masse. For these countries, oil export status was irrelevant, and whilst government integrity is significant, it accounts for a small amount of heterogeneity in the country‐level cross‐section due to widely held public attitudes towards institutions during the crisis. For COVID‐19, the market power of Islamic banks initially increased at the outset of the pandemic due to a surge in precautionary deposits, but later decreased due to economic activity constraints. The stringency of lockdowns had little effect on market power in countries that suffered the highest COVID‐19 death rates. These and other findings specific to each crisis provide a rich array of private and public policy implications relevant to crises of different types for bank liquidity crisis management, financial conduct policies, and state‐backed lending stimulus packages.

show abstract

The impact of conflict and political instability on banking crises in developing countries

Cited by 12 publications

References 83 publications

Probability of default and political instability in the MENA region

Probability of default and political instability in the MENA region

Training in Residency and Provision of Reproductive Health Services Among Family Medicine Physicians

The impact of new millennium crises on the power of Islamic banks in deposit markets

Contact Info

Product

Resources

About