The Influence of Bank Ownership, Company Size on Bank Stability: A Study in the Southeast Asian Region

Bank Ownership Company Size Bank Stability

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July 8, 2024

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This study aims to determine the influence of bank ownership and company size on bank stability in banking companies within the Southeast Asian region. The population of this study comprises banking companies from ASEAN-5 countries (Indonesia, Malaysia, the Philippines, Singapore, and Thailand) over the period from 2013 to 2022. Based on data availability, a sample of 100 banking companies over 10 periods, resulting in a total of 1000 panel observations, was analyzed. Linear regression analysis of the panel data was conducted using Eviews12 software. The results indicate that both bank ownership and company size have a negative and significant impact on bank stability. These findings suggest that banks should enhance transparency and diversification in their holdings to mitigate risks associated with high concentrations of ownership, particularly in large banks. This research highlights the need for regulatory frameworks that promote stable and resilient banking systems in the Southeast Asian region.