IDEAS home Printed from https://ideas.repec.org/a/taf/oaefxx/v12y2024i1p2290368.html
   My bibliography  Save this article

Geopolitical risk, economic policy uncertainty, and bank stability in BRICS countries

Author

Listed:
  • Oluwaseyi Ebenezer Olalere
  • Janine Mukuddem-Petersen

Abstract

Global tensions and uncertainty in economic policy can cause structural change and disruption in the volatile sector of the economy. This study investigates the effects of geopolitical risk on bank stability and the role of economic policy uncertainty in this relationship in BRICS countries. We use the panel VAR and the two-step System GMM estimation technique. The study uses bank-level data from 105 commercial banks during 2009–2021, totaling 1,365 observations. The empirical results revealed that increased geopolitical risk and economic policy uncertainty reduce bank stability once other traditional drivers are controlled for. We found that geopolitical events tend to adversely influence the stability of banks. The results also reveal that the interaction between economic policy uncertainty and geopolitical risk has a negative significant impact on bank stability. More importantly, our findings are robust and offer critical policy interventions and implications for managers, policymakers, and investors in emerging markets.

Suggested Citation

  • Oluwaseyi Ebenezer Olalere & Janine Mukuddem-Petersen, 2024. "Geopolitical risk, economic policy uncertainty, and bank stability in BRICS countries," Cogent Economics & Finance, Taylor & Francis Journals, vol. 12(1), pages 2290368-229, December.
  • Handle: RePEc:taf:oaefxx:v:12:y:2024:i:1:p:2290368
    DOI: 10.1080/23322039.2023.2290368
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1080/23322039.2023.2290368
    Download Restriction: Access to full text is restricted to subscribers.

    File URL: https://libkey.io/10.1080/23322039.2023.2290368?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:taf:oaefxx:v:12:y:2024:i:1:p:2290368. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/OAEF20 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.