Open research questions in Banking stability, regulation, efficiency

What the literature leaves open

• The study period was limited to 2014–2022, which may not capture long-term trends. Based on the findings of the study, the following recommendations are made: Deposit money banks should maintain an optimal level of liquidity that ensures they can meet shortterm obligations without holding excessive idle funds that reduce profitability. Banks should adopt efficient liquidity management strategies, including proper cash flow forecasting and asset-liability management, to balance liquidity and profitability.

  Evaluating The Impact of Liquidity Ratio and The Performance of Deposit Money Banks in Nigeria · 2026 · DOI

• Summary This study evaluates the impact of liquidity ratio on the performance of selected deposit money banks in Nigeria over the period 2014–2022. The objective was liquidity management influences bank performance, measured by Return on Equity (ROE). Based on the analysis conducted, the major findings are summarized as follows: to determine how The coefficient of regression of 0.553032 indicates that there is a positive relationship between liquidity ratio (LR) and the performance of deposit money banks in Nigeria as measured by return on equity (ROE). This implies that an increase in liquidity ratio leads to an improvement in bank performance. Despite the positive relationship, the impact of to be liquidity ratio on performance is found statistically insignificant, suggesting that liquidity alone does not strongly determine bank profitability within the study period. The correlation result shows a weak positive association between ratio and ROE, indicating that although liquidity contributes to performance, its influence is minimal. liquidity The descriptive statistics reveal that liquidity ratio exhibits high volatility and dispersion, suggesting inconsistent liquidity management practices among the selected banks.

  Evaluating The Impact of Liquidity Ratio and The Performance of Deposit Money Banks in Nigeria · 2026 · DOI

• DIRECTIONS The study has three limitations. Firstly, the study period of four years (from 2019 to 2022) might not include the structural risks built up before the period of 2019. Secondly, the study only focuses on the CAMELS ratios without considering other potential risk indicators, such as off-balance-sheet risk, derivative risk, and macroeconomic stress factors. Thirdly, the comparison of the results with the sector's averages is limited by the availability of data for the quality of management indicators. Further research potential lies in the use of various financial indicators, post-bankruptcy recovery models, and the application of machine learning algorithms for risk estimation. Further research can also be conducted 9 in terms of assessing the effectiveness of bank strategies in managing sectoral risks and mitigating market risks so that models can be developed to identify best practices in managing sectoral and market risks. The research can also be conducted in a way that more efficient early warning systems can be developed that can be used by banks to effectively manage sectoral risks. 10 REFERENCES Akbalık, M., & Sırma, İ. (2014). Foreign bank efficiency in Turkey: An application of data envelopment analysis. The Journal of Financial Research and Studies, 4(8), 1-16. https://izlik.org/JA92GH95AE Akhtar, S., Azmi, S. N., Khan, P. A., Jan, A. A., & Ansari, Z. (2024). Unveiling the financial landscape: Analyzing profitability, productivity, and efficiency of banks in an emerging economy using the CAMELS framework and panel analysis. Cogent Business & Management, 11(1), 2399747. https://doi.org/10.1080/23311975.2024.2399747 Al-Sowaidi, A.S., & Faour, A.M.W. (2023). Causes and consequences of the Silicon Valley Bank collapse: examining the interplay between management missteps and the federal reserve's floundering decisions. Journal of world economic research, 12(1), 38-46. https://doi. org/10.11648/j.jwer.20231201.15 Aranca, (2023). Loans to deposits ratio: Public listed US Banks. https://www.aranca.com/data_insight/pdf/Data-Insights- Report-Loans-to-Deposits-Ratio-Public-Listed-Banks.pdf, (12.06.2024). Baba, N., & Packer, F. (2009). From turmoil to crisis: Dislocations in the FX swap market before and after the failure of Lehman Brothers, Journal of International Money and Finance, 28(8), 1350-1374. https://doi.org/10.1016/j. jimonfin.2009.08.003 Bauer, P.W., Berger, A.N., Ferrier, G.D., & Humphrey, D.B. (1998). Consistency conditions for regulatory analysis of financial institutions: A comparison of frontier efficiency methods, Journal of economics and business, 50, 85–114. https://doi.org/10.1016/S0148-6195(97)00072-6 Bayramoğlu, M.F., & Gürsoy, İ. (2017). Individual and sectoral risk ratings of deposit banks in Turkey: An application of CAMELS analysis. Journal of Management & Economics Research, 15(1), 1-19.

  THE PREDICTABILITY OF SILICON VALLEY BANK'S BANKRUPTCY: AN ANALYSIS USING THE CAMELS RATING SYSTEM · 2026 · DOI

• Although this study offers valuable insights into the literature, it also has certain limitations. First, the analysis focuses exclusively on the Tunisian banking system. This focus allows for a precise identification of the threshold level of banking inclusion within a specific institutional and financial environment. However, by restricting the study to a single country, the sample size is relatively small, limiting the number of observations available for empirical analysis. This limited sample may affect the precision of the PSTR estimates, and the therefore be threshold values obtained interpreted with caution. It is therefore important for future research to extend this analysis to other countries should 47 Sebai, M., Talbi, O. NAŠE GOSPODARSTVO / OUR ECONOMY 72 (1) 2026 share similar that economic characteristics, in order to assess whether the observed effects hold in comparable institutional contexts. regulatory and In addition to sample size limitations, the study faces constraints related to data availability. While banking inclusion is emphasized, data disclosure and accessibility from Tunisian banks remain limited. In particular, detailed information on credit allocation across income segments is largely unavailable, restricting the ability to identify which borrower brackets contribute most to financial instability. Improved access to such data would enable policymakers and researchers to conduct more precise analyses, tailor regulatory interventions, and implement evidence-based measures to mitigate systemic risk. Beyond conventional banking, the postal system plays a critical role in promoting financial inclusion by providing essential services to marginalized populations in areas with limited banking access. Therefore, future research should incorporate both disaggregated banking data and postal inclusion to better understand how different income segments influence overall financial stability in Tunisia. Another limitation concerns the potential bidirectional relationship between banking inclusion and stability. This study focuses exclusively on the threshold effect of banking inclusion and does not consider the reverse influence, where stable and well-functioning banking systems may facilitate the expansion of inclusion. Future studies could explore this potential simultaneity by employing alternative econometric approaches, which may provide additional into the dynamic interaction between financial inclusion and banking stability. insights Finally, the findings are specific to Tunisia and cannot be directly generalized to other African or developing countries, which differ in institutional, regulatory, and economic contexts. Observed effects may vary in other settings, highlighting the need for further research on additional samples to validate and extend these results. Taken together, these limitations suggest that the conclusions should be interpreted cautiously, while providing a foundation for future studies to explore similar questions in broader and more diverse contexts.

  Does Greater Banking Inclusion Enhance or Undermine Banking Stability in Tunisia? Evidence from a Nonlinear Analysis · 2026 · DOI

• 5 percent cash reserve ratio by 2022, may constrain lending and profitability, the documented negative leverage effect indicates that capital adequacy requirements addressing excessive leverage are warranted.

  Liquidity Risk, Capital Structure, and Financial Performance: A Panel Analysis of Nigerian Deposit Money Banks · 2026 · DOI

• Abstract On the micro-level, the information about the correlation between the development of FinTech and corporate default risk is scarce, particularly in terms of its contingent and context-dependent character.

  FinTech development is associated with lower corporate default risk: evidence from China · 2026 · DOI

• The study acknowledges the following limitations. First, the research is based entirely on monthly closing prices, which may not capture intra-month volatility or daily price movements relevant to short-term traders. Second, beta, as a backwardlooking measure, may not be fully predictive of future systematic risk, particularly during structural breaks such as regulatory changes or banking sector consolidations. Third, the study uses only the NIFTY 50 as the market proxy; using alternative benchmarks such as the NIFTY Bank index or the BSE BANKEX may yield different beta estimates. Fourth, macroeconomic variables such as GDP growth, credit growth, and NPA ratios have not been incorporated as additional explanatory variables in the regression framework. Fifth, the sample is limited to ten banks and may not be fully representative of the entire Indian banking universe, which includes regional rural banks, cooperative banks, and small finance banks.

  A STUDY ON EVALUATION OF SYSTEMATIC RISK AND MARKET SENSITIVITY IN BANKING SECTOR PORTFOLIO EMPIRICAL EVIDENCE FROM INDIAN EQUITIES USING NIFTY INDEX · 2026 · DOI

• Based on the findings of the study, it was recommended that deposit money Banks should include collateral review and enhance their credit risk architecture to always management, facility performance monitoring, quality reviews, classification and risk portfolio reporting. Banks’ credit granting decisions should be based on the results of the risk assessment, client’s solvency, available collateral, and transaction compliance with policies. REFERENCES Al-Eitan G. N. &Tareq O. B. (2019). Credit Risk and Financial Performance of the Jordanian Commercial Banks: A Panel Data Analysis. Academy of Accounting and Financial Studies Journal 23(5), 1-13 Altman, E. I. (2020). Altman high yield bond and default study. U.S.: Fixed Income High Yield Report. Al-Eitan G. N. &Tareq O. B. (2019). Credit Risk and Financial Performance of the Jordanian Commercial Banks: A Panel Data Analysis. Academy of Accounting and Financial Studies Journal 23(5), 1-13 Amene, T. B., &Alemu, G. A. (2019). Determinants of financial performance in private banks: A case in Ethiopia. African Journal of Business Management, 13(9), 291-308. Adelakun, O. J., & Misra, S. (2018). Corporate Governance and Credit Risk in the Nigerian Banking Industry. Banks and Bank Systems, 13(4), 64-74. Anaemeje, A. C (2007). Banking and FinanceFederal Reserve Bank of St. Louis. (2020). The relationship between unemployment and default on credit cards and other credit products. Ayoola, A. A., & Adegbite, E. (2021). Impact of Agribusiness Financing on Agricultural Productivity in Nigeria. Journal of Economic and Sustainable Development, 12(2), 33-42. CBN (2019). CBN Monetary, Credit, Foreign Trade and Exchange Policy Guideline for 2011 Fiscal Year. Monetary Policy Circular 31. Chen, K. & Pan, C. (2022). An Empirical Study of Credit Risk Efficiency of Banking Industry in Taiwan. Web Journal of Chinese Management Review, 15(1), 1-16. Epure, M. & Lafuente, I. (2012).Monitoring bank performance in the presence of risk.Barcelona GSE Working Paper Series, 61. Goldstein, M. & Turner, P. (2019). Banking Crises in Emerging Economics: Origins and Policy Options. BIS Economic Paper, 46. Hale, R. H. (2022). Credit Analysis – A Complete Guide. New York: Wiley Inter science Publication. Kithinji, A. M. (2020). Credit Risk Management and Profitability of Commercial Banks in Kenya, Nairobi. Unpublished Thesis School of Business, University of Nairobi. Kargi, H. S. (2019). Credit risk and the performance of Nigerian banks. Zaria: Ahmadu Bello University Press TIJFRMS E-ISSN 3027-2866 P-ISSN 3027-1495 136 MAY, 2026 EDITIONS. INTERNATIONAL JOURNAL OF: FINANCIAL RESEARCH & MGT. SCIENCE VOL. 12 Kola, F. K., & Akinpelu, A. O. (2020). Microfinance Institutions' Loan Portfolio and Sustainable Development in Nigeria.

  CHALLENGES ON LOAN RECOVERY AND PERFORMANCE OF MONEY DEPOSIT BANKS IN NIGERIA · 2026 · DOI

• Fourth, the robustness battery (Table 13) shows 8 of 14 specifications qualita- tively consistent with the baseline, but notable failures include the post-COVID subsample (sign reversal) and the granular IV (sign reversal at peak), both of which warrant further investigation with better data.

  The K-A-T Framework: Macro-Financial Propagation across Funding Constraints, Input-Output Networks, and Policy Backstops · 2026 · DOI

• The most important open question—which we flag as the primary direction for future work—is whether the bilateral matrix can be expanded beyond the public-BDC sample to include the much larger non-traded BDC universe ($200B AUM versus $50B for public BDCs).

  Counterparty-Level Bank Exposure to Private Credit and Tail-Risk Bounds: Evidence from the February-April 2026 Gate Cascade · 2026 · DOI

• Purpose Although the broader consequences of interest rate liberalization (IRL) have been widely studied, few studies have systematically explored its impact on the income structure of commercial banks.

  Impact of interest rate liberalization on the income structure of Chinese commercial banks · 2025 · DOI

• This paper used the most common method of economic meta-analysis, the Partial Correlation Coefficient (PCC), to answer the question: What is the magnitude and impact, if any, of financial institution depth on income inequality? In addition, a multivariate meta-regression model was used to find moderator variables that produced mixed results in the literature.

  Financial deepening on income inequality: A quantitative meta-analysis study · 2023 · DOI

• Originality/value Previous empirical studies have concentrated on either the Dynamic Stochastic General Equilibrium (DSGE) framework or conditional mean regression approaches and delivered mixed findings of the MP effects on NBFI.

  Asymmetric effects of monetary policy on non-bank financial intermediation (NBFI) assets: a panel quantile regression approach · 2023 · DOI

• In this respect, this study advances the literature of effects on bank capital that have not been analysed by other scholarly contributions, especially as it discusses the impact of leverage rate, gross domestic product rate, and return on equity in the context of the entire banking systems of Bosnia and Herzegovina and Croatia.

  Factors effecting the Capital Adequacy Ratio of banking system of Bosnia and Herzegovina and Croatia · 2022 · DOI

• Taking into account the above trend, further studies of the system of interrelated indicators of bank payment cards, ATMs, and POS terminals should be carried out using the “Digital Evolution Index” or other international indexes that characterize the level of digitalization of the economy in the researched countries.

  The Development and Transformation of the Bank Card Market as an Imperative for Digitalization: the Case of Central and Eastern European Countries · 2021 · DOI

• Therefore, the main conclusion stemming from our research is that the effect of public debt on the private sector’s access to foreign credit is not limited to the impact of the overall level of sovereign debt; the access to foreign credit for the private sector is also affected directly by the public sector’s activity on the market for foreign credit, as measured by the claims on the public sector held by foreign banks.

  Sovereign and private claims in the hands of foreign banks – are they substitutes? The case of CEE countries · 2019 · DOI

• Global banking network has been analysed extensively in prior or post-crisis periods, but the literature on regionalization is scarce, especially with regard to the banking sector in the EU.

  Assessment of EU banking network regionalization during post-crisis period · 2018 · DOI

• Originality/value Considering that the results of existing studies on the cyclical behavior of BUF s are inconclusive, there is value in studying the cyclical movements of bank regulatory capital buffers in a set of countries that has not been analyzed before.

  Linking bank regulatory capital buffer to business cycle fluctuations · 2018 · DOI

• The study found out that despite the achievements made so far, considerable challenges remain, including the establishment of indirect monetary instruments, the reduction of the role of the government in credit allocation, and the removal of the large excess liquidity in the banking system and the Syrian money market is still insufficiently developed.

  Banking reforms in Syria · 2017

• 78% more than equilibrium capital adequacy ratio; commercial banks have strong bearing ability for the bank risk, so the capital regulation effectiveness is insufficient relatively.

  Study of the Capital Regulation Effectiveness Based on Two-tiered Stochastic Frontier Model · 2013

• Findings The findings suggest that HDB's mortgage yields are insufficient in meeting the performance standards set by the HDB, reflected by the hurdle rate.

  Public housing policy · 2008 · DOI

• Although the critique is often asserted, and although there is ample evidence of lending pressures, no studies have attempted to determine whether borrower non‐compliance is a serious problem, or whether Bank failures to enforce are the principal reason for the failure of borrowers to meet conditions; nor have any studies been carried out to show whether lending pressures are the main reason for the Bank's failure to enforce.

  Can the World Bank Enforce its Own Conditions? · 2004 · DOI

• Although this failure rate is still quite small compared with the failure rate for firms throughout the rest of the economy, the large stake that the federal government has in the financial stability of banks, and the widespread perception that healthy banks are especially important to the economy, suggest that concern about the increasing incidence of bank failures is warranted.

  Bank Failures, Risk Monitoring, and the Market for Bank Control · 1988 · DOI

• "' It remains to be seen how the Commercial Banks will react to this present situation, since there is evidence that their cash resources are fairly sensitive to their fixed and savings deposit rates, (From April, 1952, to the end of May, 1953, fixed and savings deposits together increased from $43.

  THE NATIONAL FINANCE CORPORATION · 1953 · DOI

• A key limitation of this study is the absence of loan-level data, which restricts our ability to directly observe the specific maturity terms of individual borrowings.

  Market competition in banking and asset-liability maturity mismatch of non-financial firms: Evidence from Vietnam · 2026 · DOI

Most-cited papers in Banking stability, regulation, efficiency

• Banking Market Structure, Financial Dependence and Growth: International Evidence from Industry Data · The Journal of Finance · 2001 · 537 citations
• Bubbles and Crises · The Economic Journal · 2000 · 488 citations
• A Crisis of Banks as Liquidity Providers · The Journal of Finance · 2014 · 445 citations
• Loan Sales and the Cost of Bank Capital · The Journal of Finance · 1988 · 347 citations
• Assessing the Impact of Central Bank Digital Currency on Private Banks · The Economic Journal · 2020 · 291 citations
• Credit Market Disruptions and Liquidity Spillover Effects in the Supply Chain · Journal of Political Economy · 2020 · 196 citations
• Credit Misallocation During the European Financial Crisis · The Economic Journal · 2021 · 186 citations
• Banking on the Confucian Clan: Why China Developed Financial Markets so Late · The Economic Journal · 2021 · 179 citations
• Bank Market Power and Central Bank Digital Currency: Theory and Quantitative Assessment · Journal of Political Economy · 2022 · 154 citations
• Do Banks Price Firms' Data Breaches? · The Accounting Review · 2020 · 141 citations

Most recent work

• Weak capital, weak provisions—Credit risk provisioning under IFRS 9 · Journal of Accounting and Economics · 2026
• Credit growth and asset quality in banks: examining the role of gendered leadership and board gender diversity · International Journal of Social Economics · 2026
• Basel III regulatory reforms and bank financial performance: Evidence from Nigerian deposit money banks · FUDMA Journal of Accounting and Finance Research [FUJAFR] · 2026
• Credit Risk Management Practices and Financial Performance: An Empirical Study of Banks · International Journal of Emerging Research in Science Engineering and Management · 2026
• Bubbles, crashes, and financial market contagion: Evidence from G7 economies · Research in International Business and Finance · 2026
• Assessing International Risk Sharing in Developing Countries · Oxford Bulletin of Economics and Statistics · 2026
• Central Bank Digital Currencies and the Transformation of Endogenous Money Creation · International Journal of Political Economy · 2026
• Do sustainable transitions help banks enhance resilience against unexpected shocks? Evidence from ASEAN banks · Risk Management · 2026
• The Impact of Financial Inclusion on Banking Sector Depth: An Empirical Study in Iraq (2016– 2023) · Science Education and Innovations in the Context of Modern Problems · 2026
• Collective Moral Hazard, Risk Sharing, and Banking Unions* · The Review of Financial Studies · 2026

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