Bank Financial Stability and International Oil Prices: Evidence from Listed Russian Public Banks

Using data on 17 listed public banks from Russia over the period 2008 to 2016, we analyze whether international oil prices affect the bank stability in an oil-dependent country. We resort to a Pool Mean Group (PMG) estimator, and we show that an increase in oil prices has a long-run positive effect...

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Bibliographic Details
Published in:Eastern European economics 2022-05, Vol.60 (3), p.217-246
Main Author: Albulescu, Claudiu Tiberiu
Format: Article
Language:English
Subjects:
bank financial stability
bank valuation
Banking
Banks
Business valuation
Crude oil prices
Economic theory
Economics
International finance
international oil prices
Longitudinal studies
panel data estimation
Petroleum
Prices
Public finance
Russian public banks
Stability
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Summary:Using data on 17 listed public banks from Russia over the period 2008 to 2016, we analyze whether international oil prices affect the bank stability in an oil-dependent country. We resort to a Pool Mean Group (PMG) estimator, and we show that an increase in oil prices has a long-run positive effect on Russian public banks stability. While positive oil-price shocks contribute to bank stability in the long run, an opposite effect is recorded for negative shocks. However, no significant impact is documented in the short run. Our findings are robust to different bank stability specifications and different samples.
ISSN:0012-8775
1557-9298
DOI:10.1080/00128775.2022.2064876