How Does Financial Inclusion Affect Bank Stability? Evidence from the Banking Sector in Ethiopia

References

Abdu, E. 2022. “Financial Distress Situation of Financial Sectors in Ethiopia: A Review Paper.” Cogent Economics and Finance 10 (1). https://doi.org/10.1080/23322039.2021.1996020.Search in Google Scholar

Acharya, V. V., and T. Yorulmazer. 2007. “Too Many to Fail-An Analysis of Time-Inconsistency in Bank Closure Policies.” Journal of Financial Intermediation 16 (1): 1–31. https://doi.org/10.1016/j.jfi.2006.06.001.Search in Google Scholar

Ahamed, M. M., and S. K. Mallick. 2019. “Is Financial Inclusion Good for Bank Stability? International Evidence.” Journal of Economic Behavior & Organization 157: 403–27. https://doi.org/10.1016/j.jebo.2017.07.027.Search in Google Scholar

Ahmad, F., and T. Bashir. 2013. “Explanatory Power of Bank Specific Variables as Determinants of Non-performing Loans: Evidence Form Pakistan Banking Sector.” World Applied Sciences Journal 22 (9): 1220–31. https://doi.org/10.5829/idosi.wasj.2013.22.09.1908.Search in Google Scholar

Allen, F., A. Demirguc-Kunt, L. Klapper, and M. S. Martinez Peria. 2016. “The Foundations of Financial Inclusion: Understanding Ownership and Use of Formal Accounts.” Journal of Financial Intermediation 27: 1–30. https://doi.org/10.1016/j.jfi.2015.12.003.Search in Google Scholar

Amidu, M., and H. Issahaku. 2019. “Do Globalisation and Adoption of IFRS by Banks in Africa Lead to Less Earnings Management?” Journal of Financial Reporting & Accounting 17 (2): 222–48. https://doi.org/10.1108/JFRA-05-2017-0035.Search in Google Scholar

Arebo, M., F. Hando, and A. Mekonnen. 2023. “Financial Inclusion and Stability in Ethiopia using Bank-level Data: A Two-step System GMM Estimation.” F1000Research 1 (23), https://doi.org/10.12688/f1000research.158461.1.Search in Google Scholar

Arora, R. U. 2018. “Links between Financial Inclusion and Financial Stability: A Study of BRICS.” In Handbook of BRICS and Emerging Economies, (April 2019), 222–45.10.1093/oso/9780198827535.003.0007Search in Google Scholar

Basel Committee on Banking Supervision. 2011. Principles for the Sound Management of Operational Risk, 1–27. Bank for International Settlements. https://www.bis.org/publ/bcbs195.pdf (accessed Feb 2025).Search in Google Scholar

Beck, T., A. Demirgüç-Kunt, and R. Levine. 2007a. “Finance , Inequality and the Poor.” Journal of Economic Growth 12 (1): 27–49. https://doi.org/10.1007/sl0887-007-9010-6.Search in Google Scholar

Beck, T., A. Demirguc-Kunt, and M. S. Martinez Peria. 2007b. “Reaching Out: Access to and Use of Banking Services across Countries.” Journal of Financial Economics 85 (1): 234–66. https://doi.org/10.1016/j.jfineco.2006.07.002.Search in Google Scholar

Beck, T., Hesse, H., Kick, T., and Wsternhagen, N.V. 2009. Bank Ownership and Stability: Evidence from Germany. Deutsche Bundesbank Working Paper.Search in Google Scholar

Berger, A. N., and C. H. S. Bouwman. 2013. “How Does Capital Affect Bank Performance during Financial Crisesα.” Journal of Financial Economics 109 (1): 146–76. https://doi.org/10.1016/j.jfineco.2013.02.008.Search in Google Scholar

Bhattacharyya, A., S. Wright, and M. L. Rahman. 2019. “Is Better Banking Performance Associated with Financial Inclusion and Mandated CSR Expenditure in a Developing Country?” Accounting and Finance 61 (1): 125–61. https://doi.org/10.1111/acfi.12560.Search in Google Scholar

Bhatter, H. K., and B. P. Chhatoi. 2023. “Financial Inclusion and Financial Performance: Evaluating the Moderating Effect of Mandatory Corporate Social Responsibility.” Journal of Financial Economic Policy 15 (3): 208–25. https://doi.org/10.1108/JFEP-01-2023-0012.Search in Google Scholar

Bonin, J. P., and Y. Huang. 2001. “Dealing with the Bad Loans of the Chinese Banks.” Journal of Asian Economics 12 (2): 197–214. https://doi.org/10.1016/S1049-0078(01)00082-3.Search in Google Scholar

Brunnermeier, M., A. Crocket, C. Goodhar, A. D. Persaud, and H. Shin. 2009. “The Fundamental Principles of Financial Regulation; Geneva Reports on the World Economy 11, International Center for Monetary and Banking Studies (ICMB).” Journal of Financial Regulation and Compliance 10 (2): 162–7, https://doi.org/10.1108/13581980210810175.Search in Google Scholar

Burger, A., and J. Moormann. 2008. “Productivity in Banks: Myths & Truths of the Cost Income Ratio.” Banks and Bank Systems 3 (4): 85–94.Search in Google Scholar

Chen, F.-W., Y. Feng, and W. Wang. 2018. “Impacts of Financial Inclusion on Non-performing Loans of Commercial Banks: Evidence from China.” Sustainability (Switzerland) 10 (9): 1–28. https://doi.org/10.3390/su10093084.Search in Google Scholar

Cihak, M., D. S. Mare, and M. Melecky. 2016. “The Nexus of Financial Inclusion and Financial Stability: A Study of Trade-Offs and Synergies.” In The Nexus of Financial Inclusion and Financial Stability: A Study of Trade-Offs and Synergies, (June).10.1596/1813-9450-7722Search in Google Scholar

Dahiya, S., and M. Kumar. 2020. “Linkage between Financial Inclusion and Economic Growth : An Empirical Study of the Emerging Indian Economy.” Vision 24 (2): 184–93, https://doi.org/10.1177/0972262920923891.Search in Google Scholar

Delis, M. D. 2012. “Bank Competition, Financial Reform, and Institutions: The Importance of Being Developed.” Journal of Development Economics 97 (2): 450–65. https://doi.org/10.1016/j.jdeveco.2011.05.012.Search in Google Scholar

Demirguc-Kunt, A., and L. Klapper. 2012. “Measuring Financial Inclusion the Global Findex Database.” In Turk Kardiyoloji Dernegi Arsivi.10.1596/1813-9450-6025Search in Google Scholar

Demirguc-Kunt, A., Hu, B. and Klapper, L. 2019. “Financial Inclusion in the Europe and Central Asia Region: Recent Trends and a Research Agenda.” Policy Research Working Paper 8830. https://doi.org/10.1596/1813-9450-8830.Search in Google Scholar

DeYoung, R., and G. Torna. 2013. “Nontraditional Banking Activities and Bank Failures during the Financial Crisis.” Journal of Financial Intermediation 22 (3): 42, https://doi.org/10.2139/ssrn.2032246.Search in Google Scholar

Diamond, D. W., and P. H. Dybvig. 1983. “Bank Runs , Deposit Insurance , and Liquidity.” Journal of Political Economy 91 (3): 401–19. https://doi.org/10.1086/261155.Search in Google Scholar

Federal Reserve. 2021. Financial Stability Report 2007. Washington: Board of Governors of the Federal Reserve System.Search in Google Scholar

Filatie, Y. S., and D. Sharma. 2024. “The Mediating Role of Intellectual Capital on the Nexus between Diversification, Financial Stability and Efficiency of Commercial Banks in Ethiopia.” Managerial Finance 50 (9): 1681–701. https://doi.org/10.1108/MF-02-2024-0083.Search in Google Scholar

Fisseha, F. L. 2023. “Does Financial Repression Inhibit or Facilitate Private Investment? The Case of Ethiopia.” Future Business Journal 9 (1). https://doi.org/10.1186/s43093-023-00229-w.Search in Google Scholar

Ghosh, A. 2015. “Banking-industry Specific and Regional Economic Determinants of Non-performing Loans: Evidence from US States.” Journal of Financial Stability 20: 93–104. https://doi.org/10.1016/j.jfs.2015.08.004.Search in Google Scholar

Hannig, A., and S. Jansen. 2011. “Financial Inclusion and Financial Stability: Current Policy Issues.” Financial Market Regulation and Reforms in Emerging Markets 259: 284–318. https://doi.org/10.2139/ssrn.1729122.Search in Google Scholar

Huang, R., and L. Ratnovski. 2010. “The Dark Side of Bank Wholesale Funding.” IMF Working Papers, WP/10/170, https://doi.org/10.5089/9781455201815.001.Search in Google Scholar

Isayas, Y. N. 2021. “Financial Distress and its Determinants: Evidence from Insurance Companies in Ethiopia.” Cogent Business and Management 8 (1). https://doi.org/10.1080/23311975.2021.1951110.Search in Google Scholar

Issahaku, H., J. Y. Abor, and S. K. Harvey. 2017. “Remittances, Banks and Stock Markets: Panel Evidence from Developing Countries.” Research in International Business and Finance 42: 1413–27. https://doi.org/10.1016/j.ribaf.2017.07.080.Search in Google Scholar

Issahaku, H., J. Y. Abor, and M. Amidu. 2018. “The Effects of Remittances on Economic Growth : Reexamining THE.” The Journal of Developing Areas 52 (4): 29–46. https://doi.org/10.1353/jda.2018.0050.Search in Google Scholar

Jiménez, G., and J. Saurina. 2004. “Collateral, Type of Lender and Relationship Banking as Determinants of Credit Risk.” Journal of Banking & Finance 28 (9): 2191–212. https://doi.org/10.1016/j.jbankfin.2003.09.002.Search in Google Scholar

Kebede, J. G., A. Naranpanawa, and S. Selvanathan. 2021. “Financial Inclusion: Measures and Applications to Africa.” Economic Analysis and Policy 70: 365–79, https://doi.org/10.1016/j.eap.2021.03.008.Search in Google Scholar

Khan, H. 2011. “Financial Inclusion and Financial Stability: Are They Two Sides of the Same Coin.” In Indian Bankers Association & Indian Overseas Bank, Chennai, (November), 1–12.10.15373/2249555X/APR2012/41Search in Google Scholar

Khanh, L. C. 2019. Determinants of Financial Inclusions: Comparing High, Middle, and Low-Income Countries. Hanoi: Research and Consultancy Department, Banking Academy of Vietnam.Search in Google Scholar

Khatib, S. F. A., E. Hendrawaty, A. H. Bazhair, I. A. A. Rahma, and H. Al Amosh. 2022. “Financial Inclusion and the Performance of Banking Sector in Palestine.” Economies 10 (10): 1–15. https://doi.org/10.3390/economies10100247.Search in Google Scholar

Le, T. H., A. T. Chuc, and F. Taghizadeh-Hesary. 2019. “Financial Inclusion and its Impact on Financial Efficiency and Sustainability: Empirical Evidence from Asia.” Borsa Istanbul Review 19 (4): 310–22. https://doi.org/10.1016/j.bir.2019.07.002.Search in Google Scholar

Lusardi, A., and O. S. Mitchell. 2014. “The Economic Importance of Financial Literacy: Theory and Evidence.” Journal of Economic Literature 52 (1): 5–44. https://doi.org/10.1257/jel.52.1.5.Search in Google Scholar

Morgan, P., and V. Pontines. 2014. “Financial Stability and Financial Inclusion.” ADBI Working (488), https://doi.org/10.2139/ssrn.2464018.Search in Google Scholar

Musau, S. M. 2014. Financial Inclusion and Stability of Commercial Banks in Kenya. Unpublished thesis. Kenyatta University.Search in Google Scholar

National Bank of Ethiopia. 2024. Bank Stability Report. www.cbb.gov.bh.Search in Google Scholar

Nguyen, T. D., and Q. L. Thi Du. 2022. “The Effect of Financial Inclusion on Bank Stability: Evidence from ASEAN the Effect of Financial Inclusion on Bank Stability: Evidence from ASEAN.” Cogent Economics & Finance 10 (1). https://doi.org/10.1080/23322039.2022.2040126.Search in Google Scholar

Nthambi, K. E. 2015. “Financial Inclusion, Bank Stability, Bank Ownership and Financial Performance of Commercial Banks in Kenya Kalunda Elizabeth Nthambi a Research Thesis Submitted.” In Partial Fulfillment of the Requirements for the Award of the Degree of Doctor of Philosophy.Search in Google Scholar

Oji, C. K. 2015. Promoting Financial Inclusion for Inclusive Growth in Africa. South African Institute of International Affairs, Occasional Paper No 210: 1–18.Search in Google Scholar

Ongore, V. O., and G. B. Kusa. 2013. “International Journal of Economics and Financial Issues.” International Journal of Economics and Financial Issues 3 (1): 237–52.Search in Google Scholar

Ozili, P. K. 2018. “Banking Stability Determinants in Africa.” International Journal of Managerial Finance 14 (4): 462–83. https://doi.org/10.1108/IJMF-01-2018-0007.Search in Google Scholar

Roa García, M. J. 2016. “Can Financial Inclusion and Financial Stability Go Hand in Hand?” Economic Issues 21 (2): 81–103.Search in Google Scholar

Sahay, R., M. Cihak, P. N’Diaye, A. Barajas, S. Mitra, A. Kyobe, Y. Mooi, and R. Yousefi. 2015. “Financial Inclusion: Can it Meet Multiple Macroeconomic Goals?” In IMF Staff Discussion Note.10.5089/9781513585154.006Search in Google Scholar

Saibal, G. 2008. Financial Inclusion and Financial Fragility: An Empirical Note. Germany: Library of Munich.Search in Google Scholar

Sarma, M. 2008. Index of Financial Inclusion: Some Empirical Results. Working Paper No. 215.Search in Google Scholar

Sarma, M., and J. Pais. 2011. “Financial Inclusion and Development.” Journal of International Development 23 (5): 613–28. https://doi.org/10.1002/jid.1698.Search in Google Scholar

Segoviano, M. A., and C. Goodhart. 2009. “Banking Stability Measures.” IMF Working Papers 09 (4): 1. https://doi.org/10.5089/9781451871517.001.Search in Google Scholar

Sharma, D. 2016. “Nexus between Financial Inclusion and Economic Growth Evidence from the Emerging Indian Economy.” Journal of Financial Economic Policy 8 (1): 13–36, https://doi.org/10.1108/JFEP-01-2015-0004.Search in Google Scholar

Shihadeh, F. 2020. “The Influence of Financial Inclusion on Banks’ Performance and Risk: New Evidence from MENAP.” Banks and Bank Systems 15 (1): 59–71. https://doi.org/10.21511/bbs.15(1).2020.07.Search in Google Scholar

Shihadeh, F. 2021. “Financial Inclusion and Banks’ Performance: Evidence from palestine.” Investment Management and Financial Innovations 18 (1): 126–38. https://doi.org/10.21511/imfi.18(1).2021.11.Search in Google Scholar

Shihadeh, F. H., A. M. T. Hannon, J. Guan, I. ul Haq, and X. Wang. 2018. “Does Financial Inclusion Improve the Banks’ Performance? Evidence from Jordan.” Global Tensions in Financial Markets 34: 117–38.10.1108/S0196-382120170000034005Search in Google Scholar

Shihadeh, F., and B. Liu. 2019. “Does Financial Inclusion Influence the Banks Risk and Performance? Evidence from Global Prospects.” Academy of Accounting and Financial Studies Journal 23 (3): 1–12.Search in Google Scholar

Siddik, M. N. A., and S. Kabiraj. 2018. “Does Financial Inclusion Induce Financial Stability? Evidence from Cross-Country Analysis.” Australasian Accounting, Business and Finance Journal 12 (1): 33–46. https://doi.org/10.14453/aabfj.v12i1.3.Search in Google Scholar

Ullah, S., P. Akhtar, and G. Zaefarian. 2018. “Dealing with Endogeneity Bias: The Generalized Method of Moments (GMM) for Panel Data.” Industrial Marketing Management 71: 69–78. https://doi.org/10.1016/j.indmarman.2017.11.010.Search in Google Scholar

Vo, Duc H., and N. T. Nguyen. 2021. “Does Financial Inclusion Improve Bank Performance in the Asian Region?” Asian-Pacific Economic Literature 35 (2): 123–35. https://doi.org/10.1111/apel.12330.Search in Google Scholar

Vo, D. H., N. T. Nguyen, and L. T.-H. Van. 2020. “Financial Inclusion and Stability in the Asian Region Using Bank-Level Data.” Borsa Istanbul Review 21 (1): 36–43. https://doi.org/10.1016/j.bir.2020.06.003.Search in Google Scholar

Yitayaw, M. K., Y. K. Mogess, H. L. Feyisa, W. B. Mamo, and S. M. Abdulahi. 2023. “Determinants of Bank Stability in Ethiopia: A Two-step System GMM Estimation.” Cogent Economics and Finance 11 (1). https://doi.org/10.1080/23322039.2022.2161771.Search in Google Scholar