We integrate systemic financial instability in an empirical macroeconomic model for the euro area. We find that at times of widespread financial instability the macroeconomy functions fundamentally differently from tranquil times. We employ a richly specified MarkovSwitching Vector Autoregression model to capture the dynamic relationships between a set of core macroeconomic variables and a nove...

This study empirically examines the impact of geographic expansion and income diversification on bank stability in Vietnam between 2006 2015 using system generalized method moments (GMM). The findings show that general can enhance while per se does not. results also indicate state-owned commercial banks could only benefit from rather than diversification. However, foreign ownership tends to pro...

Abstract This study examines the impact of terrorism on bank stability, represented by risk and financial performance. We consider banks from 14 countries located in Middle East North Africa region for period 2010–2018 using both three-stage least-square generalised method moments. The results provide strong evidence that with high exposure to terrorist attack exhibit low due (i.e., credit inso...