Institutional quality and banking instability.

Summary Following the onset of the current financial crisis since 2007, issues related to banking instability and institutional factors have attracted the attention of researchers and practitioners. The main objective of this thesis is how to develop a financial system that promotes economic growth while maintaining financial stability. In general, the main findings show that: (1) institutional quality plays a crucial role in explaining disparities in economic and financial performance of emerging and/or developing countries, (2) the favorable impact of strengthening institutional quality on banking stability is affirmed, (3) the effect of banking instability on the relationship between financial development and economic growth is transitory since banking instability affects financial development in the short term only, and (4) the complementarity between classical techniques for predicting banking difficulties, namely discriminant analysis, and modern techniques linked to machine learning such as neural networks.