Regulation, institutional quality, and stability of the banking system in West African Economic and Monetary Union

This study investigates the relationship between prudential regulation and banking risk in West African Economic Monetary Union contingent on institutional quality. The empirical analysis employed panel data from 63 banks spanning 2006–2019. key findings reveal that stringent regulations supervision enhance banks’ stability. Capital regulations, activity restrictions, supervisory authorities reduce of bank insolvency. results suggest a favorable climate promotes rigorous enforcement regulatory standards robust supervision, thereby amplifying their efficacy. Overall, this concludes policies exhibit risk-mitigating effects countries conditional sound frameworks.