The Impact of Adaptive Leadership on Banks’ Ability to Absorb Shocks and Improve Financial Stability Applied Evidence from Commercial Banks During 2015–2024

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Keywords:
Adaptive leadership - Leadership decision flexibility - Shock absorption - Financial stability - Commercial banks.
Abstract

This study aims to examine the impact of adaptive leadership and leadership decision flexibility in crises on the ability of commercial banks to absorb shocks and improve financial stability during the period 2015–2024. The study is based on the importance of the leadership dimension in explaining institutional responsiveness to financial risks and economic volatility. The research adopted the descriptive-analytical approach and used a questionnaire as the main instrument for data collection. The sample consisted of 213 respondents selected through stratified random sampling from employees working in commercial banks, particularly those occupying managerial and functional positions related to banking decisions, financial activities, and control functions. The results of reliability and validity tests showed that the research instrument had high internal consistency and sound statistical adequacy. The descriptive findings revealed high levels of adaptive leadership, leadership decision flexibility in crises, and financial stability in the banks under study. Multiple linear regression results indicated a positive and statistically significant effect of both adaptive leadership and leadership decision flexibility in crises on financial stability, with adaptive leadership showing relatively stronger explanatory power. The study concluded that developing leadership patterns capable of rapid adaptation and flexible decision-making during crises represents a practical approach to strengthening banks’ shock absorption capacity and supporting financial stability in volatile economic environments.

 

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Published
2026-08-27
Section
Financial and Banking Sciences
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Copyright (c) 2026 ضرغام الغانمي (المؤلف)

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This work is licensed under a Creative Commons Attribution 4.0 International License.

This is an open-access article distributed under the terms of the Creative Commons Attribution 4.0 International License (CC BY 4.0), which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited. Authors retain the copyright and full publishing rights without restrictions.

How to Cite

The Impact of Adaptive Leadership on Banks’ Ability to Absorb Shocks and Improve Financial Stability Applied Evidence from Commercial Banks During 2015–2024. (2026). Growth Leadership Journal, 2(2), 480-499. https://doi.org/10.61710/glj.v2i2.146