Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/299006 
Year of Publication: 
2021
Citation: 
[Journal:] Journal of Central Banking Theory and Practice [ISSN:] 2336-9205 [Volume:] 10 [Issue:] 1 [Year:] 2021 [Pages:] 165-181
Publisher: 
Sciendo, Warsaw
Abstract: 
This study addresses the issue of whether banking performance impacts financial stability in Southeastern European countries. To answer this question, the GMM approach has been applied in the analyses of the panel data over the period 2000-2015 for Southeastern Europe. The findings reveal the presence of significant positive long-run relationship between ROA, ROE, trade openness, and human capital, while government expenditures have negative impact on financial stability. Trade openness, human capital and government expenditures can keep the financial system stable as a whole. The Granger causality analysis discloses the main hypothesis where the banking system in this part of Europe accounts for more than 80% of the financial system. The study sheds light to the policymakers and research about the role of banking performance on financial stability for this region of Europe.
Subjects: 
Financial stability
Banking performance
Generalized Method of Moments
Southeastern Europe
JEL: 
B26
G2
G3
O1
O2
Persistent Identifier of the first edition: 
Creative Commons License: 
cc-by-nc-nd Logo
Document Type: 
Article

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