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The Relationship between Financial Inclusion and Financial Stability Banking Industry in G20 Emerging Market Countries: A Panel Data Evidence

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Listed:
  • Syella Nurhaliza
  • Ariodillah Hidayat
  • Siti Rohima
  • Rasyida Pertiwi
  • Liliana
  • Sri Andaiyani
  • Xenaneira Shodrokova
  • Ichsan Hamidi

Abstract

This study aims to identify the effect of the financial inclusion sub-index on financial stability in the banking industry proxied by Bank Z Score. This research uses secondary data in the form of panel data with annual data from 2011 to 2021 and the scope of 5 G20 Emerging Market countries. The analysis technique in this study uses the Fixed Effect Model (FEM). The results showed that the banking penetration dimension had a negative and significant effect, bank availability had a significant positive effect, while bank usage had a positive but not significant effect on banking stability. To achieve better financial inclusion and sustainable banking stability in emerging market countries, collaboration between governments, regulators, financial institutions, and other stakeholders is needed. Effective banking regulation and supervision can be the basis for introducing new financial practices and services that support financial inclusion for all levels of society.

Suggested Citation

  • Syella Nurhaliza & Ariodillah Hidayat & Siti Rohima & Rasyida Pertiwi & Liliana & Sri Andaiyani & Xenaneira Shodrokova & Ichsan Hamidi, 2024. "The Relationship between Financial Inclusion and Financial Stability Banking Industry in G20 Emerging Market Countries: A Panel Data Evidence," Economic Studies journal, Bulgarian Academy of Sciences - Economic Research Institute, issue 6, pages 113-132.
    • Handle: RePEc:bas:econst:y:2024:i:6:p:113-132
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    More about this item

    JEL classification:

    • E52 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Monetary Policy
    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages

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