Date of Award

8-2019

Degree Name

Doctor of Philosophy

Department

Public Affairs and Administration

First Advisor

Dr. Udaya R. Wagle

Second Advisor

Dr. Kevin Corder

Third Advisor

Dr. Susan Pozo

Keywords

Banking regulation, banking supervision, developing countries, Basel Accord, financial crises, economic growth

Abstract

A decade after the Great Recession in 2007/2008, many developing countries are still struggling to devise appropriate policy actions that enhance banking supervision and regulation and help mitigate large-scale crises in the future. This uncertainty has also left lingering impacts on economic growth, especially in developing countries that have weak institutional mechanisms. This study examines how banking supervision and regulatory reforms are determined in the cross-national context of advanced and developing countries. Using time series, cross-sectional data on 180 countries over a period of 12 years (1999-2011), the purpose is to explore the roles of exposure of financial crisis, trade openness, recipiency of financial assistance, level of democratization, and corruption in adopting the different degrees and forms of banking supervision and regulatory policies. The analysis is also extended to the potential impact of banking supervision and regulation on economic growth in the cross-national context.

Findings from multivariate analysis suggest that financial crisis experience, financial assistance, trade openness, are the most consistent predictors and hold significant explanatory power for the relatively stable policy context of banking supervision and regulation. This result supports the public interest theory of regulation. Findings also suggest that tighter forms of banking supervision and regulation may have contributed to faster economic growth before, although not after, the global financial crisis. Highlighting the experiences of advanced and developing countries in a group as well as separately, this study helps comparative researchers understand how the contextual and institutional settings become a part of the equation determining banking regulations and growth across countries.

Access Setting

Dissertation-Open Access

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