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BANK COMPETITION AND STABILITY RELATIONSHIP: EVIDENCE FROM SELECTED ECONOMIES OF SOUTH ASIAN REGION |
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| รหัสดีโอไอ | |
| Creator | Muhammad Amir Alvi, Amir Rafique |
| Title | BANK COMPETITION AND STABILITY RELATIONSHIP: EVIDENCE FROM SELECTED ECONOMIES OF SOUTH ASIAN REGION |
| Contributor | - |
| Publisher | TuEngr Group |
| Publication Year | 2563 |
| Journal Title | International Transaction Journal of Engineering, Management, & Applied Sciences & Technologies |
| Journal Vol. | 11 |
| Journal No. | 9 |
| Page no. | 11A9H: 1-11 |
| Keyword | Bank concentration, Banking competition-fragility, Two-step system GMM, Z-score, Commercial banks, South Asian banking, Hirschman-Herfindahl index, Wu-Hausman test, Stability of banking, Levin-Lin-Chu test. |
| URL Website | http://TuEngr.com/Vol11_9.html |
| Website title | ITJEMAST V11(9) 2020 @ TuEngr.com |
| ISSN | 2228-9860 |
| Abstract | This study explores the impact of bank competition on the stability of 88 banking institutions in four South Asian economies (Bangladesh, India, Pakistan and Sri Lanka) for 2012-2018. Both structure and non-structure measures of competition are used in empirical measurements along with z-score that is mostly used measure of stability. The results using two-step system generalized method of moment (GMM) suggests that structure measures of bank competition (Concentration ratio and Hirschman-Herfindahl index) have a significant positive impact on the stability of banks while non-structure measures of bank competition (Panzar and Rosse H statistics, Conventional, Adjusted Lerner index and Boone indicator) have a significant negative impact on the stability of banks. The results are strongly in the favour of competition-fragility hypothesis which proposes that an increase in competition reduces the stability of banking institutions in the financial market. |
