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Does Financial inclusion affect the African banking stability?

Author

Listed:
  • Imen Kouki

    (ISG Tunis)

  • Ilyes Abid

    (ISC Paris)

  • Khaled Guesmi

    (CRECC, Paris School of Business)

  • Stephane Goutte

    (CEMOTEV, UVSQ, Paris-Saclay and VNU, International School, Hanoi)

Abstract

This paper offers an empirical investigation on the channels through which financial inclusion may influence the soundness of African banks. Using the dynamic panel approach, we construct a composite index of financial inclusion for 38 African countries over the period 2005 to 2014, and then investigate if the financial inclusion could influence directly or through the competition the banking stability. Our results indicate a strong relation between financial inclusion, and banking stability. In addition, the result suggests that the policy makers face tradeoffs between financial inclusion and bank competition to improve the financial stability.

Suggested Citation

  • Imen Kouki & Ilyes Abid & Khaled Guesmi & Stephane Goutte, 2020. "Does Financial inclusion affect the African banking stability?," Economics Bulletin, AccessEcon, vol. 40(1), pages 863-879.
    • Handle: RePEc:ebl:ecbull:eb-19-00185
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    File URL: http://www.accessecon.com/Pubs/EB/2020/Volume40/EB-20-V40-I1-P74.pdf
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    References listed on IDEAS

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    Cited by:

    1. João Jungo & Mara Madaleno & Anabela Botelho, 2024. "Financial Literacy, Financial Innovation, and Financial Inclusion as Mitigating Factors of the Adverse Effect of Corruption on Banking Stability Indicators," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 15(2), pages 8842-8873, June.
    2. Muri Wole Adedokun & Mehmet Ağa, 2023. "Financial inclusion: A pathway to economic growth in Sub‐Saharan African economies," International Journal of Finance & Economics, John Wiley & Sons, Ltd., vol. 28(3), pages 2712-2728, July.

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    More about this item

    Keywords

    Financial inclusion; Bank stability; Bank competition; Africa.;
    All these keywords.

    JEL classification:

    • G2 - Financial Economics - - Financial Institutions and Services
    • N2 - Economic History - - Financial Markets and Institutions

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