Central banks' supervisory guidance on corporate governance and bank stability: Evidence from African countries

Artikel

This paper focuses on the identification of the causal relationship between central banks' supervisory guidance and individual bank stability. We propose and test the hypothesis that this causal relationship is mediated by the degree to which banks comply with their central bank's corporate governance recommendations. Specifically, we exploit the fact that there is considerable cross-country heterogeneity in providing supervisory guidance. Our recursive two-equation system is equivalent to an endogenous treatment effect model in which the treatment is the provision of supervisory guidance. We find that institutional factors, in particular the legal family of origin, political stability, contract enforcement and strength of investor protection promote provision of supervisory guidance. If a central bank has published supervisory guidance, local banks show better internal governance and higher stability.

Angaben zum Objekt

• Sprache: Englisch

Verweise und Beziehungen

• Erschienen in: Journal: Emerging Markets Review ; ISSN: 1566-0141 ; Volume: 43 ; Year: 2020 ; Amsterdam: Elsevier BV

Klassifikation und Themen

• Klassifikation: Wirtschaft ; Banks; Depository Institutions; Micro Finance Institutions; Mortgages ; Financial Institutions and Services: Government Policy and Regulation ; Corporate Finance and Governance: General ; Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill ; Corporate Finance and Governance: Government Policy and Regulation
• Thema: African banks ; Central bank ; Supervisory guidance ; Corporate governance ; Legal systems ; Institutions ; Bank stability

Beteiligte, Orts- und Zeitangaben

• Ereignis: Geistige Schöpfung
• (wer): Mutarindwa, Samuel ; Schäfer, Dorothea ; Stephan, Andreas
• Ereignis: Veröffentlichung
• (wer): Elsevier BV ; ZBW – Leibniz Information Centre for Economics
• (wo): Amsterdam
• (wann): 2020

Weitere Informationen

• DOI: doi:10.1016/j.ememar.2020.100694
• Handle: http://hdl.handle.net/10419/250051
• Letzte Aktualisierung: 10.03.2025, 11:41 MEZ