From Structural Fragility to Systemic Weakness: Modeling Depositor Confidence and Banking Stability in a Failing Banking Sector
DOI:
https://doi.org/10.63939/jies.dhf28x83الكلمات المفتاحية:
Economics، Business Administration، Behavioral Finance، Banking and Financial Institutions، Auditing and Internal Controlالملخص
This study examines the determinants of depositor trust and banking stability following Lebanon’s 2019 financial collapse. Using a quantitative post-positivist approach, data were collected from 951 Lebanese depositors through a structured questionnaire and analyzed using descriptive statistics, Confirmatory Factor Analysis (CFA), and Structural Equation Modeling (SEM) in AMOS 24.0. The findings indicate that governance and banking reform factors are significantly improve associated with perceived banking stability and the confidence-stability index, which reflects the relationship between depositor confidence and banking stability. However, while none of the examined variables (banking reform, protection, compensation, governance, anti-corruption) exerts a statistically has a significant direct relationship with effect on depositor confidence alone. These results suggest that confidence is restored primarily through a stability-mediated process underscore the central role of banking stability in shaping depositor confidence, rather than demonstrating that confidence is not directly restored through isolated reform measures but is fundamentally tied to perceived systemic stability on confidence. By integrating banking panic theory and behavioral finance, the study proposes a depositor-centered model for understanding trust restoration in a dollarized economy experiencing prolonged institutional failure. It advocates for an independent resolution agency, sequenced anti-corruption measures, and the implementation of COSO internal controls to support transparent governance and sustainable banking sector recovery.
التنزيلات
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