Investigating the impacts of digital finance technology on financial stability of the banking sector: New insights from developing market economies

References

• Agyekum, F., Locke, S., & Hewa-Wellalage, N. (2016). Financial inclusion and digital financial services: empirical evidence from Ghana. Munich Personal RePec Archive. MPRA Paper No. 82885. https://mpra.ub.uni-muenchen.de/82885/
   Google Scholar
• Ahmad, D. (2018). Financial inclusion and financial stability: Survey of the Nigeria’s financial system. International Journal of Research in Finance and Management, 1(2), 47–17. https://doi.org/10.33545/26175754.2018.v1.i2a.15
   Google Scholar
• Alamgir Hossain, S., Moudud-Ul-Huq, S., Kader, M. B., & McMillan, D. (2020). Impact of trade openness on bank risk-taking behavior: Evidence from a developing country. Cogent Economics & Finance, 8(1), 1765468. https://doi.org/10.1080/23322039.2020.1765468
   Web of Science ®Google Scholar
• Albulescu, C. T., Goyeau, D., & Pépin, D. (2013). Financial instability and ECB monetary policy. Economics Bulletin, 33(1), 388–400.
   Google Scholar
• Allen, F. & Gale, D. (2004). Competition and financial stability. Journal of Money, Credit, and Banking, 453–480.
   Web of Science ®Google Scholar
• Andrianaivo, M., & Kpodar, K. (2012). Mobile phones, financial inclusion, and growth. Review of Economics and Institutions, 3(2), 1–29. https://doi.org/10.5202/rei.v3i2.75
   Google Scholar
• Appiah, M., Li, F., & Korankye, B. (2021). Modeling the linkages among CO 2 emission, energy consumption, and industrialization in Sub-Saharan African (SSA) countries. Environmental Science and Pollution Research, 28(29), 38506–38521. https://doi.org/10.1007/s11356-021-12412-z
   PubMed Web of Science ®Google Scholar
• Appiah, M., Li, M., Naeem, M. A., & Karim, S. (2023). Greening the globe: Uncovering the impact of environmental policy, renewable energy, and innovation on ecological footprint. Technological Forecasting and Social Change, 192, 122561. https://doi.org/10.1016/j.techfore.2023.122561
   Web of Science ®Google Scholar
• Arun, T., & Kamath, R. (2015). Financial inclusion: Policies and practices. IIMB Management Review, 27(4), 267–287. https://doi.org/10.1016/j.iimb.2015.09.004
   Web of Science ®Google Scholar
• Awan, A., Abbasi, K. R., Rej, S., Bandyopadhyay, A., & Lv, K. (2022). The impact of renewable energy, internet use and foreign direct investment on carbon dioxide emissions: A method of moments quantile analysis. Renewable Energy, 189, 454–466. https://doi.org/10.1016/j.renene.2022.03.017
   Web of Science ®Google Scholar
• Babar, S., Latief, R., Ashraf, S., & Nawaz, S. (2019). Financial stability index for the financial sector of Pakistan. Economies, 7(3), 81. https://doi.org/10.3390/economies7030081
   Web of Science ®Google Scholar
• Banna, H., & Alam, M. R. (2021). Impact of digital financial inclusion on ASEAN banking stability: Implications for the post-covid-19 era. Studies in Economics and Finance, 38(2), 504–523. https://doi.org/10.1108/SEF-09-2020-0388
   Web of Science ®Google Scholar
• Bayar, Y., Ozkaya, M. H., Herta, L., & Gavriletea, M. D. (2021). Financial development, financial inclusion and primary energy use: Evidence from the European Union transition economies. Energies, 14(12), 3638. https://doi.org/10.3390/en14123638
   Web of Science ®Google Scholar
• Beck, T., Demirgüç-Kunt, A., & Levine, R. (2006). Bank concentration, competition, and crises: First results. Journal of Banking & Finance, 30(5), 1581–1603. https://doi.org/10.1016/j.jbankfin.2005.05.010
   Web of Science ®Google Scholar
• Beck, T., Senbet, L., & Simbanegavi, W. (2015). Financial inclusion and innovation in Africa: An overview. Journal of African Economies, 24(suppl_1), i3–i11. https://doi.org/10.1093/jae/eju031
   Google Scholar
• Berger, A. N., Klapper, L. F., & Turk-Ariss, R. (2009). Bank competition and financial stability. Journal of Financial Services Research, 35(2), 99–118. https://doi.org/10.1007/s10693-008-0050-7
   Web of Science ®Google Scholar
• Berger, A. N., & Mester, L. J. (2003). Explaining the dramatic changes in performance of US banks: Technological change, deregulation, and dynamic changes in competition. Journal of Financial Intermediation, 12(1), 57–95. https://doi.org/10.1016/S1042-9573(02)00006-2
   Web of Science ®Google Scholar
• Board, F. S. (2011). International monetary fund, and Bank for International settlements. Macroprudential policy tools and frameworks. Progress Report to G, 20.
   Google Scholar
• Board, F. S. (2017). Financial stability board. Financial Stability Board.
   Google Scholar
• Bourgain, A., Pieretti, P., & Zanaj, S. (2012). Financial openness, disclosure and bank risk-taking in MENA countries. Emerging Markets Review, 13(3), 283–300. https://doi.org/10.1016/j.ememar.2012.01.002
   Web of Science ®Google Scholar
• Buchak, G., Matvos, G., Piskorski, T., & Seru, A. (2018). Fintech, regulatory arbitrage, and the rise of shadow banks. Journal of Financial Economics, 130(3), 53–483. https://doi.org/10.1016/j.jfineco.2018.03.011
   Web of Science ®Google Scholar
• Canay, I. A. (2011). A simple approach to quantile regression for panel data. The Econometrics Journal, 14, 368–386. https://doi.org/10.1111/j.1368-423X.2011.00349.x
   Web of Science ®Google Scholar
• Cheang, N., & Choy, I. (2011). Aggregate financial stability index for an early warning system. Macao Monetary Research Bulletin, 21(1), 27–51.
   Google Scholar
• Chernozhukov, V., Fernandez-Val, I., & Galichon, A. (2010). Quantile and probability curves without crossing. Econometrica, 78(3), 1093–1125.
   Web of Science ®Google Scholar
• Čihák, M., Mare, D. S., & Melecky, M. (2016). The nexus of financial inclusion and financial stability: A study of trade-offs and synergies. World Bank Policy Research Working Paper, 7722.
   Google Scholar
• Cubillas, E., & González, F. (2014). Financial liberalization and bank risk-taking: International evidence. Journal of Financial Stability, 11, 32–48. https://doi.org/10.1016/j.jfs.2013.11.001
   Web of Science ®Google Scholar
• Delgado, J., Hernando, I., & Nieto, M. J. (2007). Do European primarily internet banks show scale and experience efficiencies? European Financial Management, 13(4), 643–671. https://doi.org/10.1111/j.1468-036X.2007.00377.x
   Web of Science ®Google Scholar
• Del Gaudio, B. L., Porzio, C., Sampagnaro, G., & Verdoliva, V. (2021). How do mobile, internet and ICT diffusion affect the banking industry? An empirical analysis. European Management Journal, 39(3), 327–332. https://doi.org/10.1016/j.emj.2020.07.003
   Web of Science ®Google Scholar
• Demirgüç-Kunt, A., & Detragiache, E. (1999). Monitoring banking sector fragility: A multivariate logit approach with an application to the 1996-97 banking crises. Available at SSRN 620670.
   Google Scholar
• Demirgüç-Kunt, A., & Detragiache, E. (2005). Cross-country empirical studies of systemic bank distress: A survey. National Institute Economic Review, 192, 68–83. https://doi.org/10.1177/002795010519200108
   Google Scholar
• Demirgüç-Kunt, A., Detragiache, E., & Tressel, T. (2008). Banking on the principles: Compliance with Basel Core principles and Bank Soundness. Journal of Financial Intermediation, 17(4), 511–542. https://doi.org/10.1016/j.jfi.2007.10.003
   Web of Science ®Google Scholar
• DeYoung, R. (2005). The performance of internet‐based business models: Evidence from the banking industry. The Journal of Business, 78(3), 893–948. https://doi.org/10.1086/429648
   Google Scholar
• Dittus, P., & Klein, M. U. (2011). On harnessing the potential of financial inclusion BIS Working Papers No 347. Basel. https://doi.org/10.2139/ssrn.1859412.
   Google Scholar
• Djankov, S., McLiesh, C., & Shleifer, A. (2007). Private credit in 129 countries. Journal of Financial Economics, 84(2), 299–329. https://doi.org/10.1016/j.jfineco.2006.03.004
   Web of Science ®Google Scholar
• Engel, R. J., & Schutt, R. K. (2012). The practice of research in Social work. Sage.
   Google Scholar
• Ertugrul, H. M., Ozun, A., & Kirikkaleli, D. (2019). How is financial stability impacted by political and economic stabilities in emerging markets? A dynamic panel analysis. Journal for Economic Forecasting, 22(4), 148–159.
   Web of Science ®Google Scholar
• Evans, O. (2018). Connecting the poor: The internet, mobile phones and financial inclusion in Africa. Digital Policy, Regulation & Governance, 20(6), 568–581.
   Web of Science ®Google Scholar
• Financial Stability Board. (2017). Financial stability implications from fintech: Supervisory and regulatory issues that merit authorities’ attention.
   Google Scholar
• García, M. J. R., & José, M. (2016). Can financial inclusion and financial stability go hand in hand. Economic Issues, 21(2), 81–103.
   Google Scholar
• Haider, H. (2018). Innovative financial technologies to support livelihoods and economic outcomes. K4D Helpdesk Report. Institute of Development Studies.
   Google Scholar
• Hannig, A., & Jansen, S. (2010). Financial inclusion and financial stability: Current policy issues. ADBI Working Paper, 259. Asian Development Bank Institute,
   Google Scholar
• Hodula, M., & Pfeifer, L. (2018). Fiscal-monetary-financial stability interactions in a data-rich environment. Review of Economic Perspectives, 18(3), 195–224. https://doi.org/10.2478/revecp-2018-0012
   Web of Science ®Google Scholar
• Hurlin, C. (2010). What would Nelson and Plosser find had they used panel unit root tests? Applied Economics, 42(12), 1515–1531. https://doi.org/10.1080/00036840701721539
   Web of Science ®Google Scholar
• Irving Fisher Committee. (2015). Proceedings of the workshop on “financial inclusion indicators”, cohosted by the Bank Negara Malaysia, Sasana Kijang, Kuala Lumpur, 5–6 November 2012. IFC Bulletins No. 38, Bank for International Settlements.
   Google Scholar
• Ismael, D. M., & Ali, S. S. (2021). Measuring digital and traditional financial inclusion in Egypt: A new index. International Journal of Applied Research in Management and Economics, 4(2), 13–34. https://doi.org/10.33422/ijarme.v4i2.629
   Google Scholar
• Jadoon, I. A., Mumtaz, R., Sheikh, J., Ayub, U., & Tahir, M. (2021). The impact of green growth on financial stability. Journal of Financial Regulation & Compliance, 29(5), 533–560. https://doi.org/10.1108/JFRC-01-2021-0006
   Web of Science ®Google Scholar
• Karanovic, G., & Karanovic, B. (2015). Developing an aggregate index for measuring financial stability in the Balkans. Procedia Economics and Finance, 33, 3–17. https://doi.org/10.1016/S2212-5671(15)01690-1
   Google Scholar
• Ketterer, J. A. (2017). Digital finance: New times, New challenges, New opportunities. IDB-Inter American Development Bank.
   Google Scholar
• Khan, H. R. (2011). Financial inclusion and financial stability: Are they two sides of the same coin? Address given at BANCON. Retrieved November 4–6, 2011.
   Google Scholar
• Koenker, R. (2004). Quantile regression for longitudinal data. Journal of Multivariate Analysis, 91(1), 74–89. https://doi.org/10.1016/j.jmva.2004.05.006
   Web of Science ®Google Scholar
• Lenka, S. K., & Barik, R. (2018). Has expansion of mobile phone and internet use spurred financial inclusion in the SAARC countries? Financial Innovation, 4(1). https://doi.org/10.1186/s40854-018-0089-x
   Web of Science ®Google Scholar
• Lessambo, F. I. (2023). The European banking authority. In M., Philip (Ed.), Fintech regulation and supervision challenges within the banking industry: A comparative study within the G-20 (pp. 73–80). Springer Nature Switzerland.
   Google Scholar
• Liu, Y., Lin, B., & Xu, B. (2021). Modeling the impact of energy abundance on economic growth and CO2 emissions by quantile regression: Evidence from China. Energy, 227, 120416. https://doi.org/10.1016/j.energy.2021.120416
   Web of Science ®Google Scholar
• Machado, J. A. F., & Santos Silva, J. M. C. (2019). Quantiles via moments. Journal of Econometrics, 213(1), 145–173.
   Web of Science ®Google Scholar
• Morgan, P., & Pontines, V. (2014). Financial stability and financial inclusion. Asian Development Bank Institute Working Paper Series No. 488, Asian Development Bank.
   Google Scholar
• Nasreen, S., Anwar, S., & Ozturk, I. (2017). Financial stability, energy consumption and environmental quality: Evidence from South Asian economies. Renewable and Sustainable Energy Reviews, 67, 1105–1122. https://doi.org/10.1016/j.rser.2016.09.021
   Web of Science ®Google Scholar
• Ntarmah, A. H., Kong, Y., Cobbinah, E., Gyan, M. K., & Manu, E. K. (2020). Analysis of the responsiveness of environmental sustainability to non-performing loans in Africa. Applied Economics Journal, 27(2), 77–109.
   Web of Science ®Google Scholar
• Nugroho, L., Harnovinsah, P. Y., & Prinoti, P. (2020). Analysis of comparison of Islamic banks with financial technology (fintech) in disbursements of micro-financing based on requirements, services speed and margin. Journal of Islamic Economics & Social Science-JIESS, 1(1), 1–10. https://doi.org/10.22441/jiess.2020.v1i1.001
   Google Scholar
• Ozili, P. K. (2018). Impact of digital finance on financial inclusion and stability. Borsa Istanbul Review, 18(4), 329–340. https://doi.org/10.1016/j.bir.2017.12.003
   Web of Science ®Google Scholar
• Pazarbasioglu, C., & Mora, A. G. (2020). Expanding digital financial services can help developing economies cope with crisis now and boost growth later. World BankVoices (Blog).
   Google Scholar
• Pazarbasioglu, C., Mora, A. G., Uttamchandani, M., Natarajan, H., Feyen, E., & Saal, M. (2020). Digital financial services. The World Bank, 54.
   Google Scholar
• Pedroni, P. (2004). Panel cointegration: Asymptotic and finite sample properties of pooled time series tests with an application to the PPP hypothesis. Econometric Theory, 20(3), 597–625. https://doi.org/10.1017/S0266466604203073
   Web of Science ®Google Scholar
• Pesaran, M. H. (2004). General diagnostic tests for Cross Section dependence in panels; CESifo. Working Paper (No. 1229). Cambridge University,
   Google Scholar
• Pesaran, M. H. (2007). A simple panel unit root test in the presence of cross‐section dependence. Journal of Applied Econometrics, 22(2), 265–312. https://doi.org/10.1002/jae.951
   Web of Science ®Google Scholar
• Pesaran, M. H. (2015). Testing weak cross-sectional dependence in large panels. Econometric Reviews, 34(6–10), 1089–1117. https://doi.org/10.1080/07474938.2014.956623
   Web of Science ®Google Scholar
• Pesaran, M. H., & Yamagata, T. (2008). Testing slope homogeneity in large panels. Journal of Econometrics, 142(1), 50–93. https://doi.org/10.1016/j.jeconom.2007.05.010
   Web of Science ®Google Scholar
• Rao, A., Dagar, V., Sohag, K., Dagher, L., & Tanin, T. I. (2023). Good for the planet, good for the Wallet: The ESG impact on financial performance in India. Finance Research Letters, 56, 104093. https://doi.org/10.1016/j.frl.2023.104093
   Web of Science ®Google Scholar
• Rios-Avila, F. (2020). Recentered Influence Functions (RIFs) in Stata: RIF regression and RIF decomposition. The Stata Journal, 20(1), 51–94. https://doi.org/10.1177/1536867X20909690
   Web of Science ®Google Scholar
• Saha, M., & Dutta, K. D. (2020). Nexus of financial inclusion, competition, concentration and financial stability: Cross-country empirical evidence. Competitiveness Review: An International Business Journal, 31(4), 669–692. https://doi.org/10.1108/CR-12-2019-0136
   Web of Science ®Google Scholar
• Sahay, M. R., Cihak, M., N’Diaye, M. P., Barajas, M. A., Mitra, M. S., Kyobe, M. A., & Yousefi, M. R. (2015). Financial inclusion: Can it meet multiple macroeconomic goals? International Monetary Fund.
   Google Scholar
• Sapovadia, V. (2018). Financial inclusion, digital currency, and mobile technology. In Handbook of Blockchain, Digital Finance, and Inclusion (Vol. 2, pp. 361–385). Academic Press.
   Google Scholar
• Sarma, M. (2008). Index of financial inclusion, Indian Council for Research on International Economic Relations (ICRIER). Working Paper, 2(152), 008.
   Google Scholar
• Sarma, M. (2016). Measuring financial inclusion for Asian economies, financial inclusion in Asia. Palgrave Macmillan UK.
   Google Scholar
• Scott, S. V., Van Reenen, J., & Zachariadis, M. (2017). The long-term effect of digital innovation on bank performance: An empirical study of SWIFT adoption in financial services. Research Policy, 46(5), 984–1004. https://doi.org/10.1016/j.respol.2017.03.010
   Web of Science ®Google Scholar
• Syed, A. A., Ahmed, F., Kamal, M. A., & Trinidad Segovia, J. E. (2021). Assessing the role of digital finance on shadow economy and financial instability: An empirical analysis of selected South Asian countries. Mathematics, 9(23), 3018. https://doi.org/10.3390/math9233018)
   Web of Science ®Google Scholar
• Tang, H. (2019). Peer-to-peer lenders versus banks: Substitutes or complements? The Review of Financial Studies, 32(5), 1900–1938. https://doi.org/10.1093/rfs/hhy137
   Web of Science ®Google Scholar
• Utari, G. D., Arimurti, T., & Kurnia, I. N. (2012). Optimal credit growth. Buletin Ekonomi Moneter dan Perbankan, 15(2), 3–34. https://doi.org/10.21098/bemp.v15i2.419
   Google Scholar
• Vives, X. (2016). Competition and stability in banking. In H., Jill, & P., Hannah (Eds.), Competition and stability in banking (p. 106). Princeton University Press.
   Google Scholar
• Vives, X. (2019). Digital disruption in banking. Annual Review of Financial Economics, 11, 243–272.
   Web of Science ®Google Scholar
• Westerlund, J. (2005). New simple tests for panel cointegration. Econometric Reviews, 24(3), 297–316. https://doi.org/10.1080/07474930500243019
   Web of Science ®Google Scholar
• World Bank. (2018). Information and communications for development 2018: Data-driven development. The World Bank.
   Google Scholar
• Xu, B., & Lin, B. (2020). Investigating drivers of CO2 emission in China’s heavy industry: A quantile regression analysis. Energy, 206, 118159. https://doi.org/10.1016/j.energy.2020.118159
   Web of Science ®Google Scholar
• Zhu, X., Li, L., Zhou, K., Zhang, X., & Yang, S. (2018). A meta-analysis on the price elasticity and income elasticity of residential electricity demand. Journal of Cleaner Production, 201, 169–177.
   Web of Science ®Google Scholar