Country culture and shadow banking
Abstract
Abstract We explore the impact of country culture of individualism and uncertainty avoidance on the development of shadow banking throughout the world. We find that countries with high individualism and low uncertainty avoidance have higher shadow banking activities. Our results are robust to alternative and time‐varying culture measures, alternative measures for shadow banking, different model specifications and endogeneity concerns. In addition, level of democracy in a country has a significantly positive moderating role in determining the relation between individualism and shadow banking.
Fields of Study & Subjects
Banking stability
regulation
efficiency
Culture
Economy
and Development Studies
FinTech
Crowdfunding
Digital Finance
Publication details
- Journal / source
- The Journal of Financial Research
- Publication date
- 22 February 2026
- Language
- EN