Publication Title : Nexus of Competition, Concentration, Financial Inclusion and Financial stability in banking industryof Asian Emerging economies
Publicationed By : Kumar Dabasis Dutta
Publication Publication Date : 2019-12-01 00:00:00
Publication Online Link : http://www.icmab.org.bd/wp-content/uploads/2020/01/3.Nexus-R.pdf
Publication Description :
Competition in banking sector has changed due to recent financial liberalization and restructuring in emerging countries. Although healthy competition is the pathway of continuous improvement, efficiency and greater financial inclusion, however, a fierce competition may be detrimental for financial stability. Therefore, this study aims to investigate the existence and nature of the impact of competition, concentration and financial inclusion on financial stability in banking industry of eleven emerging economies of Asia for a period from 2004 to 2014. Results of panel least squares with country fixed effect and time fixed effect model, system GMM (Blundell and Bond, 1998) estimator and robustness tests show that competition and financial inclusion significantly contribute to financial stability whereas conce1ntration influences it negatively. Therefore, the study provides support to competition-inclusion-stability view and also contributes to empirical literatures of financial stability.