Abstract
ABSTRACT This paper aims to investigate the effect of financial inclusion on bank stability in ASEAN countries. FEM, threshold estimation, and GMM method, respectively. The findings show that financial inclusion decreases the stability of banks, but the influence varies between banks and market structures. Furthermore, we examine the impact of the financial inclusion threshold on bank stability. The results show countries with financial inclusion above the threshold will increase stability, whereas countries with financial inclusion below the threshold will decrease the bank’s strength. Research on the non-linear impact of financial inclusion on bank stability through threshold model.
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