Do formal and informal institutions shape the influence of sustainable banking on financial development?

This paper explores the moderating role of formal and informal institutions on the sustainable banking and financial development link. We compute an aggregated measure of sustainability in the banking sector for a sample of 46 countries for the period 2010-2018. Our results indicate that sustainable...

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Detalhes bibliográficos
Autores: Úbeda Mellina, Fernando, Forcadell, Francisco Javier, Suárez Suárez, Nuria
Formato: artículo
Fecha de publicación:2021
País:España
Recursos:Universidad Autónoma de Madrid
Repositorio:Biblos-e Archivo. Repositorio Institucional de la UAM
Idioma:inglés
OAI Identifier:oai:repositorio.uam.es:10486/700718
Acesso em linha:http://hdl.handle.net/10486/700718
https://dx.doi.org/10.1016/j.frl.2021.102391
Access Level:acceso abierto
Palavra-chave:Culture
Financial development
Formal and informal institutions
Reputation
Sustainable banking
Trust
Economía
Descrição
Resumo:This paper explores the moderating role of formal and informal institutions on the sustainable banking and financial development link. We compute an aggregated measure of sustainability in the banking sector for a sample of 46 countries for the period 2010-2018. Our results indicate that sustainable banking positively influences financial development only in countries with strong formal institutions. Nevertheless, informal institutions can generate the necessary trust in the banking sector, allowing the positive effect of sustainable banking on financial development in countries with weak formal institutions. The results are robust after controlling the potential endogeneity issues