Institutional quality’s influence on financial inclusion’ impact on bank stability
AbstractUsing the Generalized Method of Moments (GMM), this study examines the influence of institutional quality on the impact of financial inclusion on the stability of 157 banks in 8 ASEAN countries from 2010 to 2020. The results show that financial inclusion negatively hurts bank stability, and...
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| Format: | Article |
| Language: | English |
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Taylor & Francis Group
2023-12-01
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| Series: | Cogent Economics & Finance |
| Subjects: | |
| Online Access: | https://www.tandfonline.com/doi/10.1080/23322039.2023.2190212 |
| _version_ | 1797658350268186624 |
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| author | Dao Ha Yen Nguyen |
| author_facet | Dao Ha Yen Nguyen |
| author_sort | Dao Ha |
| collection | DOAJ |
| description | AbstractUsing the Generalized Method of Moments (GMM), this study examines the influence of institutional quality on the impact of financial inclusion on the stability of 157 banks in 8 ASEAN countries from 2010 to 2020. The results show that financial inclusion negatively hurts bank stability, and this effect will be improved if it is implemented in an environment of good institutional quality. This is verified again in terms of institutional quality aspects. Corruption control, political stability, government efficiency, and the rule of law have positive effects, while regulatory quality has negative effects. The results are consistent across all three measures of bank stability, Zscore, standardized Zscore, and non-performing loans (NPL). With the above results, the study recommends that national governments take steps to improve institutional quality to increase the stability of banks in promoting financial inclusion. |
| first_indexed | 2024-03-11T17:58:49Z |
| format | Article |
| id | doaj.art-36922caa191a48d3ae2fc952f71de079 |
| institution | Directory Open Access Journal |
| issn | 2332-2039 |
| language | English |
| last_indexed | 2024-03-11T17:58:49Z |
| publishDate | 2023-12-01 |
| publisher | Taylor & Francis Group |
| record_format | Article |
| series | Cogent Economics & Finance |
| spelling | doaj.art-36922caa191a48d3ae2fc952f71de0792023-10-17T10:51:05ZengTaylor & Francis GroupCogent Economics & Finance2332-20392023-12-0111110.1080/23322039.2023.2190212Institutional quality’s influence on financial inclusion’ impact on bank stabilityDao Ha0Yen Nguyen1Faculty of Postgraduate Education, Ho Chi Minh University of Banking, Ho Chi Minh City, VietnamFaculty of Finance and Banking, Ho Chi Minh University of Banking, Ho Chi Minh City, VietnamAbstractUsing the Generalized Method of Moments (GMM), this study examines the influence of institutional quality on the impact of financial inclusion on the stability of 157 banks in 8 ASEAN countries from 2010 to 2020. The results show that financial inclusion negatively hurts bank stability, and this effect will be improved if it is implemented in an environment of good institutional quality. This is verified again in terms of institutional quality aspects. Corruption control, political stability, government efficiency, and the rule of law have positive effects, while regulatory quality has negative effects. The results are consistent across all three measures of bank stability, Zscore, standardized Zscore, and non-performing loans (NPL). With the above results, the study recommends that national governments take steps to improve institutional quality to increase the stability of banks in promoting financial inclusion.https://www.tandfonline.com/doi/10.1080/23322039.2023.2190212financial inclusionbanking stabilityASEANinstitutional qualityG15G21 |
| spellingShingle | Dao Ha Yen Nguyen Institutional quality’s influence on financial inclusion’ impact on bank stability Cogent Economics & Finance financial inclusion banking stability ASEAN institutional quality G15 G21 |
| title | Institutional quality’s influence on financial inclusion’ impact on bank stability |
| title_full | Institutional quality’s influence on financial inclusion’ impact on bank stability |
| title_fullStr | Institutional quality’s influence on financial inclusion’ impact on bank stability |
| title_full_unstemmed | Institutional quality’s influence on financial inclusion’ impact on bank stability |
| title_short | Institutional quality’s influence on financial inclusion’ impact on bank stability |
| title_sort | institutional quality s influence on financial inclusion impact on bank stability |
| topic | financial inclusion banking stability ASEAN institutional quality G15 G21 |
| url | https://www.tandfonline.com/doi/10.1080/23322039.2023.2190212 |
| work_keys_str_mv | AT daoha institutionalqualitysinfluenceonfinancialinclusionimpactonbankstability AT yennguyen institutionalqualitysinfluenceonfinancialinclusionimpactonbankstability |