Annals of Finance

, Volume 14, Issue 2, pp 143–193 | Cite as

Regulation, supervision and deposit insurance for financial cooperatives: an empirical investigation

  • Amr KhafagyEmail author
Research Article


This paper analyses the impact of different regulation and supervision approaches, as well as deposit insurance schemes, on the development of financial cooperatives in developing countries, using random and fixed effects estimators. Information on laws regulating financial cooperatives, the supervisory approaches adopted, and deposit insurance schemes in sixty-five developing countries were collected—mostly—from original legislations for the period 1995–2014. Key findings suggest that indicators of financial cooperative development are positively correlated with the existence of a specialized regulation; supervision under non-bank financial supervisory authorities; and the presence of deposit insurance schemes, while general cooperative society’s regulations and banking regulations are negatively correlated with financial cooperatives’ indicators. These results are robust after controlling for economic and institutional factors as well as potential endogeneity bias.


Financial regulations Financial supervision Financial cooperatives Deposit insurance 

JEL Classification

G21 G28 P13 



I am very grateful to Professor Volker Nienhaus, Raffael Bair, Mohamed El-Shewy, the anonymous referee and the editor for their constructive comments, and the German Academic Exchange Service (DAAD) for the financial support.


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Copyright information

© Springer-Verlag GmbH Germany 2017

Authors and Affiliations

  1. 1.Institute of Development Research and Development PolicyRuhr-UniversityBochumGermany

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