We show that bank risk rises, particularly for larger banks and those with greater interest-sensitive liabilities, during times of economic policy uncertainty through two economic channels: ‘credit rationing’ and ‘revenue diversification’. The credit rationing channel shows that economic...

Using the Generalized Method of Moments (GMM), this study examines the influence of institutional quality on the impact of financial inclusion on the stability of 157 banks in 8 ASEAN countries from 2010 to 2020. The results show that financial inclusion negatively hurts bank stability, and this...

While insurance plays an important role in the financial sector, it is often ignored in the financial development-economic growth literature. This paper examines the relationship between insurance and economic growth via a global cross-country study over 1980 to 2006, using both cross-sectional...

Prior studies have examined the development of the financial system and its impact on economic growth, but little has been said about the relationship between its four major components: banking, the stock market, the bond market (private and public bond) and insurance (life and nonlife). Using a...

We consider the relationship between emotions and decision-making under risk. Specifically, we examine the emotional correlates of risk-averse decisions. In our experiment, individuals' facial expressions are monitored with facereading software, as they are presented with risky lotteries. We...