How Does Financial Inclusion Affect Bank Stability in Emerging Economies?

Résumé fourni par la source

The effects of financial inclusion (FI) on the safety of financial institutions are the focus of this research. Statistical analysis is performed on data extracted from the annual reports of 116 listed banks in emerging Asian markets, covering the years 2012–2021. The data are analyzed by using the two-step dynamic panel system generalized estimating linear model (GMM). FI is measured using four proxies: the FI index, bank penetration, availability of financial services and usability. In addition, bank stability is assessed using the Z-score. The findings of the study show that FI is significantly and positively related to bank stability. Our results support the FI–stability correlation across all measures of FI. Policymakers should make appropriate decisions regarding risk-taking while considering factors such as FI. Adding market-based metrics of bank risk-taking and expanding the study’s scope to include both established and emerging nations are two ways to achieve this goal.

Ce résumé expose les affirmations des auteurs. BNTIC ne l’interprète pas comme une validation indépendante des résultats.