Financial Stability: Does Social Activism Matter?

Journal of Financial Regulation and Compliance, 2019

31 Pages Posted: 11 Jan 2019

See all articles by Peterson K Ozili

Peterson K Ozili

Central Bank of Nigeria; University of Essex - Essex Business School

Date Written: 2019


This study investigate the impact of social activism on financial system stability. Financial stability was analysed from two complementary perspectives: bank-led financial stability and financial system stability driven by sector-wide credit supply. Social activism was analysed from three perspectives: gender equality advocacy, environmental sustainability advocacy, and social protection advocacy. The findings reveal that gender equality and environmental sustainability advocacy have significant positive effects for financial stability while social protection advocacy has a significant negative effect for financial stability. Also, social activism has negative effects for financial stability in the post-2008 financial crisis era. Finally, there are differential effects for country-groups, for instance, social activism strongly improves bank-led financial stability in African countries and for BLEND countries (countries that are eligible for IDA borrowing based on per capita income levels and are also creditworthy for some borrowing from the International Bank of Restructuring and Development (IBRD). The findings are relevant for the on-going debate about whether social inclusivity and activism has any economic value for the stability of businesses and the financial system. The findings have implications.

Keywords: financial stability; financial institutions; gender equality; environmental sustainability; social activism; advocacy

Suggested Citation

Ozili, Peterson K, Financial Stability: Does Social Activism Matter? (2019). Journal of Financial Regulation and Compliance, 2019. Available at SSRN:

Peterson K Ozili (Contact Author)

Central Bank of Nigeria ( email )

Plot 33, Abubakar Tafawa Balewa Way
Central Business District, Cadastral Zone

University of Essex - Essex Business School ( email )

Wivenhoe Park
Colchester, CO4 3SQ
United Kingdom

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