Financial Inclusion, Competition and Financial Stability: New Evidence from Developing Economies

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Published: Dec 30, 2025

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Saad Babar
Faculty of Management Sciences, Hamdard University Islamabad, Pakistan.
https://orcid.org/0009-0004-9749-5579
Sanober Shaheen
Faculty of Management Sciences, Hamdard University Islamabad, Pakistan.
https://orcid.org/0000-0003-2328-8628
Syed Rizwan Shah
Faculty of Management Sciences, Hamdard University Islamabad, Pakistan.
https://orcid.org/0009-0006-3053-5673

Abstract

The study explores the impact of competition and financial inclusion (FI) on financial stability (FS) in 3 emerging economies of South Aisa i.e. Pakistan, India, and Bangladesh, between 2015 and 2023. This study contributes to the literature by incorporating the testing of the non-linear impact of FI on FS and also examining the interplay among competition and FI. GMM estimation is used for analysis. The results show that FI weakens FS in these nations, while competition supports it. The report emphasizes the importance of financial development as a key factor in enabling FI to positively impact FS. A nonlinear relationship is revealed by adding the square term of FI. The results suggest that deliberate investments in FI can improve FS, making it a top priority for emerging economies. The study concludes with policy recommendations for increasing FI in developing nations to support overall FS. Policymakers can develop a more resilient financial landscape by considering these recommendations and implementing specific regulations.

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How to Cite
Babar, S., Shaheen, S., & Shah, S. R. (2025). Financial Inclusion, Competition and Financial Stability: New Evidence from Developing Economies. Journal of Workplace Behavior, 6(2). Retrieved from https://charisma-jwb.com/index.php/jwb/article/view/289
Issue
Vol. 6 No. 2 (2025): Journal of Workplace Behavior (JoWB)
Section
Articles
Author Biographies

Saad Babar, Faculty of Management Sciences, Hamdard University Islamabad, Pakistan.

Saad Babar is an experienced Faculty in Management Sciences at the Faculty of Management Sciences, Hamdard University, and Islamabad. Saad’s work primarily focuses on knowledge sharing, knowledge transfer, knowledge creation, and workplace behavior. He has a special interest in enterprise development and start-ups

Sanober Shaheen, Faculty of Management Sciences, Hamdard University Islamabad, Pakistan.

Sanober Shaheen graduated from the Doctor of Philosophy (Finance) program at Capital University of Science and Technology, Pakistan at the end of 2022. As part of the requirements of the degree, Sanober completed a research thesis titled ‘The impact of Female representation in Board of directors and Audit Committee on Financial Reporting Quality: Moderating role of Family Ownership’. Sanober is an Assistant Professor at Hamdard University, Pakistan where she teaches into management sciences and accounting & Finance programs in the Faculty of Management Science, and supervises students undertaking graduate studies in Accounting and Finance.

Syed Rizwan Shah, Faculty of Management Sciences, Hamdard University Islamabad, Pakistan.

Syed Rizwan has done his M.S. in Business Administration from the Federal Urdu University of Art, Science & Technology (FUUAST), Islamabad. This advanced degree provides a strong foundation in management principles, which he directly applies to the administration of complex educational programs. A dedicated public servant and educationalist, Mr. Shah has served for over 16 years in the National Commission for Human Development (NCHD) under the Ministry of Federal Education & Professional Training, Islamabad, Pakistan. His expertise lies in educational management, teacher training, student assessment, and field monitoring, where he works to implement and improve national education initiatives at the grassroots level.