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Sains Malaysiana 54(6)(2025): 1641-1656
http://doi.org/10.17576/jsm-2025-5406-18
Digital
Finance and Banking Stability: Balancing Inclusion and Risk in Asian Economies
(Kewangan Digital dan Kestabilan Perbankan: Mengimbangi Rangkuman dan Risiko dalam Ekonomi Asia)
MUHAMMAD
IATZAZ UL HASSAN1,2, MENGYUN WU3,*, UMAIR KASHIF2,
YASIR RASOOL4, JAN MUHAMMAD SOHU5 & MUHAMMAD AKHTAR4
1Quanzhou University of Information Engineering, China
2School of Finance and Economics, Jiangsu University, 301, Xuefu, Road Zhenjiang, China
3School of Accounting, Shanghai Lixin University of Accounting and Finance, China
4School of Management, Jiangsu University, China
5Department of Business Administration, Sukkur IBA
University, Sukkur, Pakistan
Diserahkan:
23 Januari 2025/Diterima:
29 April 2025
Abstract
This study investigates the
relationship between digital financial inclusion (DFI), the digital economy
(DE), and bank stability across 33 Asian economies from 2010 to 2022. Using
Z-score (ZS) and Non-Performing Loans (NPLs) as measures of stability, the analysis
employs Generalized Method of Moments (GMM), Generalized Least Squares (GLS),
and Panel-Corrected Standard Error (PCSE) models. The findings show that DFI
negatively impacts ZS and increases NPLs, indicating higher risks associated
with financial inclusion. Conversely, DE positively affects ZS, enhancing bank
stability, although its effect on NPLs is minimal. These results highlight the
double-edged nature of DFI and the stabilizing role of DE in the banking sector.
Policymakers must balance efforts to promote DFI with measures to manage
associated risks, such as improving credit assessment tools and strengthening
digital infrastructure. This study contributes to understanding the dynamics of
digital financial transformation and its implications for banking risk in
developing economies.
Keywords:
Asian economies; banking sector risk management; business strategies; digital
economy; digital financial inclusion
Abstrak
Penyelidikan ini mengkaji hubungan antara rangkuman kewangan digital (DFI), ekonomi digital (DE) dan kestabilan bank merentas 33 ekonomi Asia dari 2010 hingga 2022. Menggunakan skor-Z (ZS) dan Pinjaman Tidak Berbayar (NPL) sebagai ukuran kestabilan, analisis menggunakan model Kaedah Umum Detik (GMM), Kuasa Dua Terkecil (GLS) dan Ralat Piawai Panel-Diperbetulkan. Keputusan menunjukkan bahawa DFI memberi kesan negatif kepada ZS dan meningkatkan NPL, menunjukkan risiko yang lebih tinggi yang berkaitan dengan rangkuman kewangan. Sebaliknya, DE memberi kesan positif kepada ZS, meningkatkan kestabilan bank, walaupun kesannya terhadap NPL adalah minimum. Keputusan ini menyerlahkan sifat dwi-mata DFI dan peranan penstabilan DE dalam sektor perbankan. Pembuat dasar mesti mengimbangi usaha untuk mempromosikan DFI dengan langkah mengurus risiko yang berkaitan, seperti menambah baik alat penilaian kredit dan mengukuhkan infrastruktur digital. Kajian ini menyumbang kepada pemahaman dinamik transformasi kewangan digital dan implikasinya terhadap risiko perbankan dalam ekonomi membangun.
Kata kunci: Ekonomi Asia; ekonomi digital; pengurusan risiko sektor perbankan; rangkuman kewangan digital; strategi perniagaan
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*Pengarang untuk surat-menyurat; email: 20230018@lixin.edu.cn
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