ORCID ID

https://orcid.org/0009-0005-7367-1467

Date of Award

5-2025

Degree Type

Dissertation

Degree Name

Ph.D.

Degree Program

Financial Economics

Department

Economics and Finance

Major Professor

Dr. M. Kabir Hassan

Second Advisor

Dr. Mosab Hammoudeh

Third Advisor

Dr. Walter Lane

Fourth Advisor

Dr. Greg Price

Abstract

The first essay explores the impact of banking regulations, particularly capital requirements, liquidity requirements, and supervisory powers, on liquidity risk and overall financial stability in European markets. By analyzing a dataset of banks from various European economies, this paper utilizes a dynamic panel data model to assess how these regulations influence banks' liquidity positions and their ability to maintain stability during periods of economic stress. Bank regulations positively and significantly impact the level of bank’s Liquidity Coverage Ratio (LCR) and Net Stable Funding Ratio (NSFR), mitigating the banks’ liquidity risk. The findings contribute to the understanding of the effectiveness of banking regulations in different economic contexts, offering insights into the design of regulatory frameworks for European markets.

The second essay adopts a quantitative research design that focuses on establishing the impact of the multi-market contact (MMC) hypothesis on the performance and stability of banks. The data used comprised of the 20 top US Banks from 51 states spanning 2012 to 2023 and was sourced from Bankscope. The dependent variables of interest focused on the measurement of the performance of the banks and included the earnings per share (EPS), the market to book value, non-performing loans, capital adequacy ratio and the z-score. The three independent variables of interest associated with the multi-market contact hypothesis were average MMC (MMC1), the weighted MMC (MMC2) and the alternative weighted MMC (MMC3). According to the results, there is a negative and significant relationship between MMC1 and for ROA (-0.0001*), ROE (-0.0002*), CAR (-0.0009*), and EPS (-0.0135*) which implies that collusion or mutual forbearance is associated with lower returns for the four-performance metrics of the banks. The same results were reported for MMC2 and MMC3, with slight deviations. Based on the findings, it can be concluded that Multi-Market Contact Hypothesis has a negative statistically significant impact on the performance of the banking industry in the US which is contrary to what the existing literature says.

Rights

The University of New Orleans and its agents retain the non-exclusive license to archive and make accessible this dissertation or thesis in whole or in part in all forms of media, now or hereafter known. The author retains all other ownership rights to the copyright of the thesis or dissertation.

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