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The effects of bank size and funding liquidity on financial stability: does bank regulation matter? evidence from BRICS


Citation

Mahat, Fauziah and Dahir, Ahmed Mohamed (2018) The effects of bank size and funding liquidity on financial stability: does bank regulation matter? evidence from BRICS. International Journal of Economics and Management, 12 (spec. 2). pp. 339-350. ISSN 1823-836X; ESSN: 2600-9390

Abstract

This paper investigates whether the effect of funding liquidity on financial stability changes depending upon bank regulation and bank size, using bank-level data for 254 banks in BRICS over the period 2005-2014. The paper employs the system GMM techniques on dynamic panel analysis. The results show that the effect of funding liquidity on financial stability is positively and negatively associated with bank regulation and bank size, respectively, suggesting that bank regulation improves the financial stability, while the size hurts the stability. Moreover, the impact of funding liquidity on stability is strongly pronounced following the 2008 crisis. These findings provide further insights about bank regulation and bank size.


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Additional Metadata

Item Type: Article
Divisions: Faculty of Economics and Management
Publisher: Faculty of Economics and Management, Universiti Putra Malaysia
Keywords: BRICS; Capital stringency; Funding liquidity; System GMM
Depositing User: Nabilah Mustapa
Date Deposited: 12 Nov 2019 06:49
Last Modified: 12 Nov 2019 06:49
URI: http://psasir.upm.edu.my/id/eprint/16084
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