BANK EFFICIENCY AND FINTECH-BASED INCLUSIVE FINANCE: EVIDENCE FROM DUAL BANKING SYSTEM
This paper examines the relation between fintech-based inclusive finance and bank efficiency using annual unbalanced data of 318 banks from 7 dual-banking countries over the period of 2011 to 2020. It measures bank efficiency using the data envelopment analysis (DEA) and then applies the Simar-Wilso...
| Main Authors: | , , |
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| Format: | Article |
| Language: | English |
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Bank Indonesia
2023-02-01
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| Series: | Journal of Islamic Monetary Economics and Finance |
| Subjects: | |
| Online Access: | https://jimf-bi.org/index.php/JIMF/article/view/1621 |
| _version_ | 1797849631903711232 |
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| author | Hasanul Banna M Kabir Hassan Hassan Bataineh |
| author_facet | Hasanul Banna M Kabir Hassan Hassan Bataineh |
| author_sort | Hasanul Banna |
| collection | DOAJ |
| description | This paper examines the relation between fintech-based inclusive finance and bank efficiency using annual unbalanced data of 318 banks from 7 dual-banking countries over the period of 2011 to 2020. It measures bank efficiency using the data envelopment analysis (DEA) and then applies the Simar-Wilson bootstrapping regression to measure the influence of fintech-based financial inclusion on bank efficiency. From the efficiency measures, we note that Islamic banks are more efficient than their conventional counterparts. Our regression analysis indicates that fintech-based inclusive finance is positively related to bank efficiency, implying that greater implementation of digitally integrated financial system improves banking efficiency. Our findings are robust in alternative estimation methods. Our study provides some policy implications for policymakers, standard setters, and regulators. |
| first_indexed | 2024-04-09T18:48:02Z |
| format | Article |
| id | doaj.art-4b707a1a82b44f35b23751c21b435465 |
| institution | Directory Open Access Journal |
| issn | 2460-6146 2460-6618 |
| language | English |
| last_indexed | 2024-04-09T18:48:02Z |
| publishDate | 2023-02-01 |
| publisher | Bank Indonesia |
| record_format | Article |
| series | Journal of Islamic Monetary Economics and Finance |
| spelling | doaj.art-4b707a1a82b44f35b23751c21b4354652023-04-10T08:55:19ZengBank IndonesiaJournal of Islamic Monetary Economics and Finance2460-61462460-66182023-02-019111610.21098/jimf.v9i1.16211621BANK EFFICIENCY AND FINTECH-BASED INCLUSIVE FINANCE: EVIDENCE FROM DUAL BANKING SYSTEMHasanul Banna0M Kabir Hassan1Hassan Bataineh2Manchester Metropolitan University, United KingdomUniversity of New Orleans, USAUniversity of New Orleans, USAThis paper examines the relation between fintech-based inclusive finance and bank efficiency using annual unbalanced data of 318 banks from 7 dual-banking countries over the period of 2011 to 2020. It measures bank efficiency using the data envelopment analysis (DEA) and then applies the Simar-Wilson bootstrapping regression to measure the influence of fintech-based financial inclusion on bank efficiency. From the efficiency measures, we note that Islamic banks are more efficient than their conventional counterparts. Our regression analysis indicates that fintech-based inclusive finance is positively related to bank efficiency, implying that greater implementation of digitally integrated financial system improves banking efficiency. Our findings are robust in alternative estimation methods. Our study provides some policy implications for policymakers, standard setters, and regulators.https://jimf-bi.org/index.php/JIMF/article/view/1621bank efficiency, fintech, inclusive finance, dual-banking, access to finance. |
| spellingShingle | Hasanul Banna M Kabir Hassan Hassan Bataineh BANK EFFICIENCY AND FINTECH-BASED INCLUSIVE FINANCE: EVIDENCE FROM DUAL BANKING SYSTEM Journal of Islamic Monetary Economics and Finance bank efficiency, fintech, inclusive finance, dual-banking, access to finance. |
| title | BANK EFFICIENCY AND FINTECH-BASED INCLUSIVE FINANCE: EVIDENCE FROM DUAL BANKING SYSTEM |
| title_full | BANK EFFICIENCY AND FINTECH-BASED INCLUSIVE FINANCE: EVIDENCE FROM DUAL BANKING SYSTEM |
| title_fullStr | BANK EFFICIENCY AND FINTECH-BASED INCLUSIVE FINANCE: EVIDENCE FROM DUAL BANKING SYSTEM |
| title_full_unstemmed | BANK EFFICIENCY AND FINTECH-BASED INCLUSIVE FINANCE: EVIDENCE FROM DUAL BANKING SYSTEM |
| title_short | BANK EFFICIENCY AND FINTECH-BASED INCLUSIVE FINANCE: EVIDENCE FROM DUAL BANKING SYSTEM |
| title_sort | bank efficiency and fintech based inclusive finance evidence from dual banking system |
| topic | bank efficiency, fintech, inclusive finance, dual-banking, access to finance. |
| url | https://jimf-bi.org/index.php/JIMF/article/view/1621 |
| work_keys_str_mv | AT hasanulbanna bankefficiencyandfintechbasedinclusivefinanceevidencefromdualbankingsystem AT mkabirhassan bankefficiencyandfintechbasedinclusivefinanceevidencefromdualbankingsystem AT hassanbataineh bankefficiencyandfintechbasedinclusivefinanceevidencefromdualbankingsystem |