Banking system stability: A global analysis of cybercrime laws
Published 1 Dec 2025 ยท arxiv.org
Overview
This study examines the impact of cybercrime legislation on banking system stability globally. It uses data from 132 countries to assess how such laws affect bank stability.
Key Insights
- Cybercrime Laws Enhance Stability: The enactment of cybercrime laws improves banking stability.
- Evidence: Data from 132 countries; robustness tests confirm findings.
- Verifiable: Yes
- Impact Varies by Country: The effect is stronger in countries with severe penalties and effective enforcement.
- Evidence: Cross-sectional analysis.
- Verifiable: Yes
- Channels of Influence: Laws enhance funding liquidity and reduce operational risk.
- Evidence: Empirical analysis of liquidity and risk metrics.
- Verifiable: Yes
Why It Matters
Cybercrime legislation is crucial for maintaining a stable banking environment, impacting both individual banks and the broader financial system.
Actionable Implications
- Advocate for stronger cybercrime laws in jurisdictions with weaker regulations.
- Implement robust cybersecurity practices to align with legal requirements.
- Monitor international legal cooperation efforts to enhance enforcement.
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