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Country-wide protests and financial stability

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  • Ozili, Peterson K

Abstract

This paper investigates the effect of country-wide protests on financial stability after controlling for inflation rate and the level of political stability. Country-wide protests may pressure a powerful government to listen and meet the demands of relatively less powerful groups, but country-wide protests can be destructive especially when such protests lead to the destruction of the business assets of the clients of financial institutions thereby making it difficult for them to meet their loan repayment and other obligations to financial institutions, and posing risk to the stability of the financial system. Financial stability and country-wide protests data were analysed for the United Kingdom. The empirical results show that bank non-performing loans are higher in country-wide protests years, implying that country-wide protests have a significant negative impact on financial stability through high non-performing loans in years where there are country-wide protests.

Suggested Citation

  • Ozili, Peterson K, 2025. "Country-wide protests and financial stability," MPRA Paper 123300, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:123300
    as

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    File URL: https://mpra.ub.uni-muenchen.de/123300/1/MPRA_paper_123300.pdf
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    References listed on IDEAS

    as
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    More about this item

    Keywords

    financial stability; United Kingdom; protest; demonstrations; non-performing loans; country-wide protests.;
    All these keywords.

    JEL classification:

    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • G28 - Financial Economics - - Financial Institutions and Services - - - Government Policy and Regulation

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