Abstract
Motivated by the recent financial crisis and the near collapse of the insurance giant American International Group (AIG), we empirically study the link between the insurance sector, the size of the shadow system and financial stability across countries. Using the Z-score as a measure of financial stability and the ratio of insurance assets to GDP for 26 countries during the period 1998–2011, this paper shows that: (i) the insurance sector is negatively and significantly related to financial stability, and that (ii) using the shadow banking system as a channel, the insurance sector is detrimental to financial stability for countries with a high level of shadow banking assets.
| Original language | English |
|---|---|
| Pages (from-to) | 224-232 |
| Number of pages | 9 |
| Journal | Research in International Business and Finance |
| Volume | 42 |
| DOIs | |
| State | Published - Dec 2017 |
| Externally published | Yes |
Bibliographical note
Publisher Copyright:© 2017 Elsevier B.V.
UN SDGs
This output contributes to the following UN Sustainable Development Goals (SDGs)
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SDG 10 Reduced Inequalities
Keywords
- Financial stability
- Insurance
- Shadow banking
ASJC Scopus subject areas
- Business, Management and Accounting (miscellaneous)
- Finance
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