Financial inclusion and bank risk-taking: the effect of information sharing
We explore how information-sharing and financial inclusion influence bank risk in 84 countries from 1996 to 2020. Results show that greater information-sharing and financial inclusion lessen bank risk levels. The average bank’s Z-score increases by 3.51–9.09%, attributable to enhanced information-s...
| Main Authors: | , , , |
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| Format: | Article |
| Language: | English |
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Elsevier
2022
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| Subjects: | |
| Online Access: | https://repository.ugm.ac.id/284255/1/Junarsin-2_EB.pdf |
| _version_ | 1826050770862080000 |
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| author | Marcelin, I. Sun, W. Teclezion, M. Junarsin, Eddy |
| author_facet | Marcelin, I. Sun, W. Teclezion, M. Junarsin, Eddy |
| author_sort | Marcelin, I. |
| collection | UGM |
| description | We explore how information-sharing and financial inclusion influence bank risk in 84 countries from 1996 to 2020. Results show that greater information-sharing and financial inclusion lessen bank risk levels. The average bank’s Z-score increases by 3.51–9.09%, attributable to enhanced
information-sharing and higher financial inclusion. Inclusion-based deposit mobilization reduces bank probability of insolvency, suggesting that inclusion provides banks with cheap funding sources, reducing moral hazard problems and risky behaviors. Results remain robust across risk indicators and controlling for FinTech-based inclusion and COVID-19-induced risk. They support the hypothesis of increased social returns to transparency, information-sharing, and reaching out to financially excluded segments. |
| first_indexed | 2024-03-14T00:09:49Z |
| format | Article |
| id | oai:generic.eprints.org:284255 |
| institution | Universiti Gadjah Mada |
| language | English |
| last_indexed | 2024-03-14T00:09:49Z |
| publishDate | 2022 |
| publisher | Elsevier |
| record_format | dspace |
| spelling | oai:generic.eprints.org:2842552023-12-01T03:36:41Z https://repository.ugm.ac.id/284255/ Financial inclusion and bank risk-taking: the effect of information sharing Marcelin, I. Sun, W. Teclezion, M. Junarsin, Eddy Banking Finance and Investment Economics and Business We explore how information-sharing and financial inclusion influence bank risk in 84 countries from 1996 to 2020. Results show that greater information-sharing and financial inclusion lessen bank risk levels. The average bank’s Z-score increases by 3.51–9.09%, attributable to enhanced information-sharing and higher financial inclusion. Inclusion-based deposit mobilization reduces bank probability of insolvency, suggesting that inclusion provides banks with cheap funding sources, reducing moral hazard problems and risky behaviors. Results remain robust across risk indicators and controlling for FinTech-based inclusion and COVID-19-induced risk. They support the hypothesis of increased social returns to transparency, information-sharing, and reaching out to financially excluded segments. Elsevier 2022-07-19 Article PeerReviewed application/pdf en https://repository.ugm.ac.id/284255/1/Junarsin-2_EB.pdf Marcelin, I. and Sun, W. and Teclezion, M. and Junarsin, Eddy (2022) Financial inclusion and bank risk-taking: the effect of information sharing. Finance Research Letters, 50 (2022). pp. 1-14. ISSN 1544-6123 https://www.elsevier.com/locate/frl https://doi.org/10.1016/j.frl.2022.103182 |
| spellingShingle | Banking Finance and Investment Economics and Business Marcelin, I. Sun, W. Teclezion, M. Junarsin, Eddy Financial inclusion and bank risk-taking: the effect of information sharing |
| title | Financial inclusion and bank risk-taking: the effect of
information sharing |
| title_full | Financial inclusion and bank risk-taking: the effect of
information sharing |
| title_fullStr | Financial inclusion and bank risk-taking: the effect of
information sharing |
| title_full_unstemmed | Financial inclusion and bank risk-taking: the effect of
information sharing |
| title_short | Financial inclusion and bank risk-taking: the effect of
information sharing |
| title_sort | financial inclusion and bank risk taking the effect of information sharing |
| topic | Banking Finance and Investment Economics and Business |
| url | https://repository.ugm.ac.id/284255/1/Junarsin-2_EB.pdf |
| work_keys_str_mv | AT marcelini financialinclusionandbankrisktakingtheeffectofinformationsharing AT sunw financialinclusionandbankrisktakingtheeffectofinformationsharing AT teclezionm financialinclusionandbankrisktakingtheeffectofinformationsharing AT junarsineddy financialinclusionandbankrisktakingtheeffectofinformationsharing |