What has Europe Taught Us about Banking Integration and Financial Stability?
| Authors | |
|---|---|
| Year of publication | 2014 |
| Type | Article in Proceedings |
| Conference | Proceedings of the 14th International Conference on Finance and Banking |
| MU Faculty or unit | |
| Citation | |
| Web | http://icfb.rs.opf.slu.cz/sites/icfb.rs.opf.slu.cz/files/07_deev.pdf |
| Field | Management and administrative |
| Keywords | banking integration; financial stability; panel cointegration analysis |
| Attached files | |
| Description | Financial theory advocates cross-border banking integration to lead to greater financial stability, as risks are spread around the world. The financial crisis has also shown us that in the integrated banking system the instability is easily propagated to otherwise healthy banking systems. This study is the first empirical examination of European cross-country relationship between banking integration and stability of the banking system. The study employs panel cointegration analysis to establish a highly significant negative impact of banking integration on financial stability in European countries. |
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