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Evaluating the Role of Bank Specific, Macroeconomic, and Institutional Factors in Determining Banking Sector Performance: Evidence from South Asian Economies

Year: 2026

Type: article

Abstract: This study investigates the bank-specific, macroeconomic, and institutional factors affecting the performance of the banking sector specifically profitability and stability in South Asian countries from 2011 to 2020. Using a two-step system GMM estimation method on a balanced panel dataset, the study identifies key determinants, including bank size, operating expenses, economic growth, exchange rates, and economic freedom. Institutional factors, particularly corruption, significantly influence banking sector profitability and stability. The findings offer several policy recommendations to enhance banking sector performance in the region.

Source: Bulletin of Monetary Economics and Banking

DOI: 10.59091/2460-9196.2250

Authors: Samia Nasreen, Mehwish Gulzar, Xuan-Hoa Nghiem, Saira Arsh

Institutions: Lahore College for Women University, Government of Punjab, VNU International School

Language: English

Topic: Banking stability, regulation, efficiency

Subfield: Finance

Field: Economics, Econometrics and Finance

Domain: Social Sciences

SDG: Decent work and economic growth

Open Access status: diamond

OpenAlex ID: W7128535836

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