The impact of corruption, economic freedom, regulation and transparency on bank profitability and bank stability: Evidence from the Eurozone area

This paper examines the impact of corruption, economic freedom, bank regulation and transparency on profitability stability using a sample 326 banks from 19 Eurozone countries over period 2005–2018. We use balanced panel data set Arellano-Bond Generalized Method Moments dynamic estimation procedure. find that corruption have negative effect stability. By contrast, greater freedom boosts banking Our results show is positively related to its precise effects depend upon nature regulation. additionally examine how our are affected by Governance issues addition 5 other European outside Eurozone. overall indicate variables interest sensitive measures chosen calculate financial