Impact of Political Risk and Competition on Bank Stability: Case of South Asia and China

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Published Dec 31, 2023
https://doi.org/10.61506/02.00134
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Vol. 9 No. 4 (2023)

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Syed Waqar Akbar
Riphah International University, Islamabad, Pakistan
Ajid Ur Rehman
Riphah International University, Islamabad, Pakistan
Imran Arshad
Riphah International University, Islamabad, Pakistan

Abstract

This study examines the relationship between the competition, political risk and bank stability. The relationship among these variables is of deep context on country level. The banking stability is of great attention in the current political and turmoil in the region. This study uses the 5 countries including China, Pakistan, India, Bangladesh, and Sri Lanka. The time span of the data is of 7 years from 2011 to 2017 collected from the world bank indicators.  The findings of the study suggest that competition and political risk have significant effect on banking stability. The economic growth moderates the relationship between competition and banking stability. Also, the relationship between political risk and banking stability is moderated by economic growth. This study will help the banking sectors to consider the competition and political risk in their risk management policies regarding market. This study will help the researchers to add more diverse variables in future research.

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How to Cite
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Waqar Akbar, S., Ur Rehman, A. and Arshad, I. 2023. Impact of Political Risk and Competition on Bank Stability: Case of South Asia and China. Journal of Policy Research. 9, 4 (Dec. 2023), 128–137. DOI:https://doi.org/10.61506/02.00134.
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