Abstract

This study focused on how corporate governance, government regulation, profitability and balanced sheets could be used as indicators of the overall performance of banks during the financial crisis. In addition, this study introduced literature of Panamanians banks. Using balance sheet and income statements characteristics of Panamanians, Canadians and USA banks we find that banks with more deposits, liabilities and less liquidity perform better during the crisis. Using some index for Supervision, bank governance and country level regulation, we find that banks with powerful supervisors, more restrictions in their activities and shareholders friendly- boards perform worst during the crisis. Regarding country level governance it’s interesting that the stronger the regulations, the more the rule of law and less corruption, the worst performance during the crisis.

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