Legal Origins, Governance and Bank Lending

Autor: Azmat Gani, Almukhtar Al-Abri, Sami Salim Al Kharusi, Alya Al Foori
Rok vydání: 2022
Předmět:
Zdroj: Perspectives on Global Development and Technology. 21:27-49
ISSN: 1569-1497
1569-1500
DOI: 10.1163/15691497-12341615
Popis: This article investigates if legal origins and governance impact lending by banks in a large sample of low- and middle-income countries for 2004 to 2017. The results revealed that countries with British legal origin, the strength of the legal systems, the rule of law, and regulatory quality are positively and statistically significantly correlated with the credit provided by the banks, among other factors. The estimations based on data for the post-global financial crisis revealed that in countries with British legal origin, the rule of law and regulatory quality mattered intensely in the banking sector’s credit. The results imply that the developing countries should continue to sustain and improve their good governance practices and improve on contract enforcements to allow maximum leverage practices of good governance that can positively influence credit diffusion by the banks.
Databáze: OpenAIRE
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