The Influence of Competition on Financial Stability: Evidence from Banking Sectors címmel jelent meg Sági Judit és Saad Raafat Abou írása a PTE, XVI. PÉCSI PÉNZÜGYI NAPOK absztraktkötetében.
Absztrakt:
This study significantly examines the implied non-linear relationship between two crucial concepts: banks’ competition and financial stability for some selected countries over the period 2014-2024. Firstly, based on scholars, financial stability policy brought a debatable level since the times of the 2007-2008 financial crisis, especially in prioritizing the phenomenon of competition in the banking industry. Since market power and profit margins in the banking sector are gradually diminishing with the concept of intense competition. However, based on earlier academic research, there hasn't been any conclusive proof about the nature of the relationship between competitiveness and stability in financial systems up to now. Descriptive analysis will be employed to assess the complexity of the relationship, focusing on key variables related to financial stability such as capital adequacy ratios, liquidity ratios, profitability indicators, and asset quality measures, as well as variables indicating competition among banks such as concentration ratios, entry and exit rates, and interest rate spreads. Major results of the study revealed a nuanced connection between financial stability and banking competition as the descriptive analysis showed that more competition between banks pointed out negative consequences on financial stability. Conversely, it can be concluded from the findings that high levels of banking competition enhance efficient risk-taking management among financial entities, which will lead to a better stable financial situation. Ultimately, the study implies that efficiency, safety, and stability of the financial markets should be one of the major focuses for policymakers and banking regulators.
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