DOES DIGITAL TRANSFORMATION ENHANCE BANK STABILITY? EVIDENCE FROM EMERGING ECONOMIES
DOI:
https://doi.org/10.5281/Keywords:
digitalization, transforming, IT, financial system, country-clustered analysisAbstract
This study tests whether digital transformation improves banking-system stability in emerging economies using a transparent, replicable country-year panel built from World Bank data. Using a composite Digital Transformation Index (DTI) and two-way fixed-effects regressions, the empirical evidence does not show a robust stability “dividend” in the form of higher banking-system Z-scores once country/year heterogeneity and macro-financial controls are considered.
References
1.Harchekar, J. S. (2018). Digitalization in banking sector. International Journal of Trend in Scientific Research and Development, 6(6).
2.Balkan, B. (2021). Impacts of digitalization on banks and banking. In The Impact of Artificial Intelligence on Governance, Economics and Finance, Volume I (pp. 33–50). Singapore: Springer Nature Singapore.
3.Shcherbatykh, D., Shpileva, V., Riabokin, M., Zham, O., & Zalizniuk, V. (2021). Impact of digitalization on the banking system transformation. International Journal of Computer Science & Network Security, 21(12spc), 513–520.
4.Petrova, L. A., & Kuznetsova, T. E. (2020). Digitalization in the Banking Industry: Digital Transformation of Environment and Business Processes. Finansovyi Zhurnal (Financial Journal), 12(3), 91–101.
5.Carbó-Valverde, S. (2017). The impact of digitalization on banking and financial stability. Journal of Financial Management, Markets and Institutions, (1), 133–140.
6.Van der Zande, J. (2018). Banks and digitalization. In The Rise and Development of Fintech (pp. 327–349). Routledge.
