The Impact of Financial Inclusion on Banking Stability- An Analytical Study in the Iraqi Banking Sector
DOI:
https://doi.org/10.54536/ajase.v2i1.2106Keywords:
Financial Inclusion, Banking Stability, Iraqi Banking SectorAbstract
This research examines the impact of financial inclusion, as indicated by its indicators, on banking stability. The Iraqi banking sector has been tested, and the main research problem revolves around finding appropriate ways to achieve financial inclusion that align with the Iraqi Central Bank’s policies, tailored to the Iraqi environment to achieve stability in the banking sector. The research was applied to the banking sector as a whole through quantitative and statistical data analysis from 2010 to 2021. The main hypotheses were tested to determine the impact relationships between research variables, to answer the research questions and achieve the set objectives. To analyze the data and information, various statistical methods were used using the statistical software (STATA13) and EXCEL, in addition to using the least squares method with the regression model for the hypotheses. The research yielded a set of results, indicating a significant partial effect of financial inclusion indicators on banking stability in this study. The results of the financial inclusion indicators in banking stability varied, and the sub-hypotheses were partially accepted, emphasizing a greater contribution of financial inclusion to it.
Downloads
References
Akhtar, S., & Pearce, D. (2010). Microfinance in the Arab World: The challenge of financial inclusion.
Al-Chahadah, A. R., Refae, G. A. E., & Qasim, A. (2020). The impact of financial inclusion on bank performance: the case of Jordan. International Journal of Economics and Business Research, 20(4), 483-496.
Al-Hasnawi, S. S., & Mahdi, L. S. (2020). The Role of Financial Inclusion in Promoting the Growth of the Iraqi Economy. An Applied Study of a Sample of Banks Listed in the Iraqi Stock Exchange, College of Administration and Economics, University of Al-Qadisiyah(58), 27-50.
Alshubiri, F. N. (2017). Determinants of financial stability: an empirical study of commercial banks listed in Muscat Security Market. Journal of Business and Retail Management Research, 11(4).
Alsomaidaee, M., Al Janabi, A. A. M., & Neamah, R. (2023). The Impact of Brand Capital on the Stock Price Crash Risk, an Empirical Study. American Journal of Environmental Economics, 2(1), 29-36.
Alwan, G. H., & Kadhim, E. S. (2020). The impact of public debt on financial stability in Iraq. journal of Economics And Administrative Sciences, 26(121).
Barajas, A., Beck, T., Belhaj, M., & Naceur, S. B. (2020). Financial inclusion: what have we learned so far? What do we have to learn? IMF Working Papers, 2020(157).
Bhattarai, B. P. (2020). Effects of non-performing loan on profitability of commercial banks in Nepal.
Blancher, M. N. R., Appendino, M., Bibolov, A., Fouejieu, M. A., Li, M. J., Ndoye, A., Panagiotakopoulou, A., Shi, W., & Sydorenko, T. (2019). Financial inclusion of small and medium-sized enterprises in the Middle East and Central Asia. International Monetary Fund.
Chouhan, V., Chandra, B., & Goswami, S. (2014). Predicting financial stability of select BSE companies revisiting Altman Z score. International Letters of Social and Humanistic Sciences, 15(2), 92-105.
Eldomiaty, T., Hammam, R., & El Bakry, R. (2020). Institutional determinants of financial inclusion: evidence from world economies. International journal of development issues, 19(2), 217-228.
Faruqinata, A., & Wibowo, W. (2020). The Effect of Banking Credit Growth and Purchase of Securities Growth on Banking Stability in Indonesia. International Journal of Innovation, Creativity and Change, 13(8), 1371-1395.
Gabor, D., & Brooks, S. (2017). The digital revolution in financial inclusion: international development in the fintech era. New political economy, 22(4), 423-436.
Ginevičius, R., & Podviezko, A. (2013). The evaluation of financial stability and soundness of Lithuanian banks. Economic research-Ekonomska istraživanja, 26(2), 191-208.
Guérineau, S., & Jacolin, L. (2014). L’inclusion financière en Afrique subsaharienne: faits stylisés et déterminants. Revue d’économie financière(4), 57-80.
Helms, B. (2006). Access for all: Building inclusive financial systems. World Bank Publications.
Ishioro, B. O. (2022). Deposit Money Banks-Based-Financial Inclusion and Economic Growth in Nigeria: The Role of a Dual Folded Proxy. Gusau International Journal of Management and Social Sciences, 5(3), 23-23.
J. Powell, R., & H. Vo, D. (2020). A comprehensive stability indicator for banks. Risks, 8(1), 13.
Kane, E. J. (2016). A theory of how and why central-bank culture supports predatory risk-taking at megabanks. Atlantic Economic Journal, 44, 51-71.
Kumar, K. V. (2011). Innovations in modern banking and innovative financial inclusion–issues and challenges. CLEAR IJRCM, 1(2), 147-196.
Lenka, S. K., & Sharma, R. (2017). Does financial inclusion spur economic growth in India? The Journal of Developing Areas, 51(3), 215-228.
Lepetit, L., & Strobel, F. (2015). Bank insolvency risk and Z-score measures: A refinement. Finance research letters, 13, 214-224.
Li, X., Tripe, D. W., & Malone, C. B. (2017). Measuring bank risk: An exploration of z-score. Available at SSRN 2823946.
Lozi, N. (2021). The reality of financial inclusion in Arab countries and mechanisms for promoting it - a comparative study of the level of financial inclusion in a group of Arab countries. Journal of Economics and Management Research, 2(2).
Maher, S. (2022). Financial Inclusion and Monetary Policy-Investigating the Relationship between Financial Inclusion and Monetary Policy: The Case of Egypt.
Martínez-Malvar, M., & Baselga-Pascual, L. (2020). Bank risk determinants in Latin America. Risks, 8(3), 94.
Mugo, C. (2021). Banking sector consolidation and stability in Kenya. Journal of Applied Finance and Banking, 11(3), 129-159.
Mutarindwa, S., Schäfer, D., & Stephan, A. (2020). Central banks’ supervisory guidance on corporate governance and bank stability: Evidence from African countries. Emerging markets review, 43, 100694.
My, S. T. (2020). Credit risk and bank stability of Vietnam commercial bank: a BK approach. International Journal of Analysis and Applications, 18(6), 1066-1082.
Oyetade, D., Obalade, A. A., & Muzindutsi, P.-F. (2022). The Impact of Changes in Basel Capital Requirements on the Resilience of African Commercial Banks. Scientific Annals of Economics and Business, 69(1), 111-132.
Shubbar, H. H., & Vladimirovich, G. A. (2019). Basis of implementation of improving financial stability in the banking system in Iraq. RELIGACIÓN. Revista de Ciencias Sociales y Humanidades, 4(16), 245-253.
Sifrain, R. (2021). Determinants of Banking Stability: Evidence from Haiti’s Banking System. Journal of Financial Risk Management, 10(1), 80-99.
Sulemana, M., Dramani, J. B., & Oteng-Abayie, E. F. (2018). Foreign bank inflows: Implications for bank stability in sub-Saharan Africa. African Review of Economics and Finance, 10(1), 54-81.
Syed, A. A., Kamal, M. A., Ullah, A., & Grima, S. (2022). An asymmetric analysis of the influence that economic policy uncertainty, institutional quality, and corruption level have on India’s digital banking services and banking stability. Sustainability, 14(6), 3238.
Uhde, A., & Heimeshoff, U. (2009). Consolidation in banking and financial stability in Europe: Empirical evidence. Journal of Banking & Finance, 33(7), 1299-1311.
Yunita, P. (2022). Dual Banking System Stability Index in the Shadow of COVID-19 Pandemic. International Journal of Islamic Economics and Finance (IJIEF), 5(1), 151-176.
Downloads
Published
How to Cite
Issue
Section
License
Copyright (c) 2023 Mohammed Hammad Safi, Hichem Khlif
This work is licensed under a Creative Commons Attribution 4.0 International License.
