Effective corporate governance practices are essential to achieving and maintaining societal trust in the banking system, which is essential for the smooth functioning of the financial sector and the economy as a whole. Bad Corporate Governance can contribute to bank failures, which in turn can represent significant costs due to their potential impact on the macroeconomic system. Added to this is the risk of contagion to the entire sector, which may, at the limit, jeopardize the financial system, as was evident in the international financial crisis that began in mid-2007. The main objective of the research is to analyze the impact of variables associated with governance, structure and economy in the economic and financial performance of banking institutions in Portugal. The Z-Score is a variable widely used in the literature to measure banking risk (Beltratti & Stulz, 2012; Fu, Lin, & Molyneux, 2014). More specifically, this indicator measures the proximity to insolvency of a particular bank, which becomes insolvent when the value of its assets is not sufficient to meet its obligations (Wang, 2018). The model created highlights the negative impact of the variable LNAT and TXINF. If in relation to the latter the reason for being considered as such is perceptible and acceptable, the former raises doubts as to its consistency. and it becomes insolvent when the value of its assets is not enough to meet its obligations (Wang, 2018). The model created highlights the negative impact of the variable LNAT and TXINF. If in relation to the latter the reason for being considered as such is perceptible and acceptable, the former raises doubts as to its consistency. and it becomes insolvent when the value of its assets is not enough to meet its obligations (Wang, 2018). The model created highlights the negative impact of the variable LNAT and TXINF. If in relation to the latter the reason for being considered as such is perceptible and acceptable, the former raises doubts as to its consistency. It is also worth mentioning that when the t-student significance test is performed, the following variables are excluded because their p-value is greater than 0.05: CG, TXINF and TXJUR. We accept CPAT because the p-value is over the threshold even slightly exceeding (0.0548).

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