The effect of domestic savings on banking stress, WAEMU zone

The general objective of this study is to analyze the effect of domestic savings on banking stress in the UEMOA zone. To achieve our objective, we used a dataset from a sample of 7 UEMOA countries except Guinea-Bissau, covering the period 1996-2020. Using the Pooled Mean Group (PMG) estimator, the results revealed that savings exert a positive effect on banking stress in the short term, while in the long term, its effect is negative. On the other hand, inflation has a positive effect on long-term banking stress, while bank size and GDP growth rate both have a negative effect on long-term banking stress.Keywords: Banking stress, domestic savings, PMG, UEMOA.