TY - JOUR
T1 - Financial earthquakes and aftershocks
T2 - From Brexit to Russia-Ukraine conflict and the stability of European banks
AU - Vu, Phuong Thi Thu
AU - Huynh, Nhan
AU - Phan, Hoa
AU - Hoang, Hanh
N1 - Funding Information:
The authors are indebted Toan Huynh (Queen Mary University of London), Quan Nguyen (University of Sussex), Lee Eun Kyung (Chongqing University), Stephen White (University of Pretoria) and Quang Thien Tran (Van Lang University) for their thoughtful comments and suggestions. Phuong Thi Thu Vu acknowledges the financial supports from Thuyloi University – Vietnam .
Funding Information:
The authors are indebted Toan Huynh (Queen Mary University of London), Quan Nguyen (University of Sussex), Lee Eun Kyung (Chongqing University), Stephen White (University of Pretoria) and Quang Thien Tran (Van Lang University) for their thoughtful comments and suggestions. Phuong Thi Thu Vu acknowledges the financial supports from Thuyloi University – Vietnam.
Publisher Copyright:
© 2023 The Author(s)
PY - 2023/10
Y1 - 2023/10
N2 - This study examines the impacts of recent turbulent events (Brexit, COVID-19 pandemic, and the Russia – Ukraine conflict) on the European banks’ resilience. Using the quarterly data of 251 commercial banks in 33 European economies from 2014 to 2022, we find that uncertainties significantly reduce bank's overall performance and stability. The comparisons of each event reveal the differential impacts in nature on specific indicators of performance and stability. The additional analyses highlight the roles of bank size, age, holding capital, and business models in attenuating the destabilizing effects of those shocks. The disparity effects are also visible across affiliations to income-generation levels and the European Union. The results are robust across alternative performance proxies and econometric approaches. From the starting point of this study, valuable implications are proposed for stakeholders, regulators, and policymakers in the challenges of unprecedented uncertainties.
AB - This study examines the impacts of recent turbulent events (Brexit, COVID-19 pandemic, and the Russia – Ukraine conflict) on the European banks’ resilience. Using the quarterly data of 251 commercial banks in 33 European economies from 2014 to 2022, we find that uncertainties significantly reduce bank's overall performance and stability. The comparisons of each event reveal the differential impacts in nature on specific indicators of performance and stability. The additional analyses highlight the roles of bank size, age, holding capital, and business models in attenuating the destabilizing effects of those shocks. The disparity effects are also visible across affiliations to income-generation levels and the European Union. The results are robust across alternative performance proxies and econometric approaches. From the starting point of this study, valuable implications are proposed for stakeholders, regulators, and policymakers in the challenges of unprecedented uncertainties.
KW - Bank stability
KW - Economic policy uncertainty
KW - European banks
KW - Geopolitical risk
KW - Health crisis
UR - http://www.scopus.com/inward/record.url?scp=85171802135&partnerID=8YFLogxK
U2 - 10.1016/j.intfin.2023.101830
DO - 10.1016/j.intfin.2023.101830
M3 - Article
AN - SCOPUS:85171802135
SN - 1042-4431
VL - 88
JO - Journal of International Financial Markets, Institutions and Money
JF - Journal of International Financial Markets, Institutions and Money
M1 - 101830
ER -