32 Pages Posted: 29 Oct 2009 Last revised: 24 Aug 2012
Date Written: October 28, 2009
This paper analyzes the stability of financial systems with different bank’s ownership structures. We distinguish between profit oriented banks (commercial banks) and non-profit maximizing bank such as savings banks and cooperative banks (stakeholder banks). Using a country-level panel dataset over the period 1993-2007, and two different measures of financial stability at the systemic level (the country portfolio Z-score and a crisis dummy variable), we find consistent evidence that the presence of stakeholder banks in the financial sector increases systemic financial stability.
Keywords: Ownership structure, Risk-taking, Financial stability, Stakeholders, Concentration
JEL Classification: G21, G32, G18, G38.
Suggested Citation: Suggested Citation
LopezPuertas-Lamy, Mónica and Gutierrez, Oscar, The Effect of Ownership Structure on Financial Stability: An Empirical Investigation (October 28, 2009). Available at SSRN: https://ssrn.com/abstract=1495856 or http://dx.doi.org/10.2139/ssrn.1495856