文章基本信息

标题：Nonlinearity of Competition-Stability Nexus: Evidence from Bangladesh
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作者：Kumar Debasis Dutta ; Mallika Saha
期刊名称：Etikonomi
印刷版ISSN：1412-8969
电子版ISSN：2461-0771
出版年度：2021
卷号：20
期号：1
页码：55-66
DOI：10.15408/etk.v20i1.15984
语种：English
出版社：Universitas Islam Negeri Syarif Hidayatullah Jakarta
摘要：Financial deregulation since the 1980s has been stimulating fierce competition among banks and influencing financial stability across the world. In pace with this, Bangladesh's banking industry is also experiencing intense competition since it is composed of many banks. The empirical evidence on competition and stability widely debate to date, perhaps for not considering the potential nonlinearity. Therefore, our study aims to explore the nonlinear impact of competition on the financial stability of Bangladeshi banks over 2010-2017. For achieving this objective, we compute the Boone indicator and Z-score using bank-level data to measure competition and stability, respectively, and examine the nonlinear dynamics of competition-stability nexus employing threshold analysis in a panel setup. Our findings confirm that the competition-stability relationship is nonlinear and implies that financial stability is more substantial (weaker) in a less (more) competitive market. Our results bear specific policy implications. JEL Classification: G21, G28 How to Cite: Dutta, K. D., & Saha, M. (2021). Nonlinearity of Competition-Stability Nexus: Evidence from Bangladesh. Etikonomi, 20(1), 55 – 66. https://doi.org/10.15408/etk.v20i1.15984.