Role of Regulatory Governance in Financial Stability: A Comparison of High and Low Income Countries

Abstract This study explores the effect of regulatory governance on financial stability using cross-sectional data from 55 countries. The findings show that and various subcomponents are positively correlated with in selected results, based ordinary least square method, explain has a significant positive influence Further, concerning different dimensions governance, it is showed an individual impact all components except for strength external audit, supervisory independence accountability. However, central bank`s economic have statistically stability, whereas bank accountability, political as well audit insignificant statistical stability. Finally, concludes dimension played most role improving