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The paper examines the impact of corruption on the soundness of banking systems in middle-income countries. The findings show that corruption exacerbates the soundness of banking systems in those countries. This implies that increased corruption leads to banks more prone to taking risks and a rise in non-performing loans, rendering higher probability of crises. The results from robustness test yields consistent results. In addition, the results of the study show that the bankspecific variables as well as those related to regulations and institutional quality can also affect the health of banking systems in middle-income countries.

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Issue: Vol 1 No Q5 (2017)
Page No.: 82-91
Published: Nov 28, 2018
Section: Research article

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Copyright: The Authors. This is an open access article distributed under the terms of the Creative Commons Attribution License CC-BY 4.0., which permits unrestricted use, distribution, and reproduction in any medium, provided the original author and source are credited.

 How to Cite
Tran, S., Nguyen, M., & Nguyen, L. (2018). Corruption and the soundness of banking systems in middle-income countries. Science & Technology Development Journal: Economics- Law & Management, 1(Q5), 82-91.

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