Financial Crises and Banking Governance in the Emerging Countries of South East Asian

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Foued Sabbagh
Foued Sabbagh
1 University of Sousse

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This article aims to analyze the effectiveness of bank governance mechanisms or through prudential regulation as an external dimension or either the mode of administration as an internal dimension is a source of birth of crises. In addition, the risk in terms of financial instability, institutional weaknesses and the weakness of regulatory and supervisory system leads to a lack of governance in banks. This empirical study was conducted on a sample of four emerging countries of South East Asia and to an annual period from 1980 to 2010, using the Probit model on panel data. The results also suggest that there is a strong and significant causal relationship between financial crises and bank governance in the South East Asian countries during periods of financial liberalization.

Funding

No external funding was declared for this work.

Conflict of Interest

The authors declare no conflict of interest.

Ethical Approval

No ethics committee approval was required for this article type.

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Not applicable for this article.

Foued Sabbagh. 2017. \u201cFinancial Crises and Banking Governance in the Emerging Countries of South East Asian\u201d. Global Journal of Management and Business Research - B: Economic & Commerce GJMBR-B Volume 17 (GJMBR Volume 17 Issue B4): .

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Issue Cover
GJMBR Volume 17 Issue B4
Pg. 49- 59
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Crossref Journal DOI 10.17406/GJMBR

Print ISSN 0975-5853

e-ISSN 2249-4588

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September 23, 2017

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English

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This article aims to analyze the effectiveness of bank governance mechanisms or through prudential regulation as an external dimension or either the mode of administration as an internal dimension is a source of birth of crises. In addition, the risk in terms of financial instability, institutional weaknesses and the weakness of regulatory and supervisory system leads to a lack of governance in banks. This empirical study was conducted on a sample of four emerging countries of South East Asia and to an annual period from 1980 to 2010, using the Probit model on panel data. The results also suggest that there is a strong and significant causal relationship between financial crises and bank governance in the South East Asian countries during periods of financial liberalization.

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Financial Crises and Banking Governance in the Emerging Countries of South East Asian

Foued Sabbagh
Foued Sabbagh University of Sousse

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