Jurnal Ilmiah Akuntansi dan Bisnis
Vol 17 No 2 (2022)

Perspective Contradiction Regarding Competition and Financial Stability in the Banking Sector: Review of Literature

Ni Wayan Noviana Safitri (Faculty of Economics and Business, Universitas Udayana, Indonesia)
I Gusti Bagus Wiksuana (Faculty of Economics and Business, Universitas Udayana, Indonesia)
Ida Bagus Panji Sedana (Faculty of Economics and Business, Universitas Udayana, Indonesia)
I Gde Kajeng Baskara (Faculty of Economics and Business, Universitas Udayana, Indonesia)



Article Info

Publish Date
27 Jul 2022

Abstract

This study aims to provide a systematic literature review (SLR) on the scope, measurement, and impact of competition on banking stability. PRISMA technique was used to undertake a meta-analysis of scientific articles. After applying all of the criteria, a total of 42 relevant studies were discovered. Previous research has examined the relationship between banking stability and competition in a variety of countries around the world, and has produced two opposing viewpoints, namely competition fragility and competition stability. The first perspective gets more support. When it comes to the measurement instrument, most studies use the Lerner index to quantify the intensity of competition. It is also discovered that the GMM (Generalized Approach of Moment) approach is widely used. Future research can examine each indicator's strengths and weaknesses further so that it can be used to gauge banking competition in accordance with the banking systems examined in each nation, yielding reliable results. Keywords: competition, stability, banking

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Journal Info

Abbrev

jiab

Publisher

Subject

Economics, Econometrics & Finance

Description

JIAB exists to publish high quality research papers in accounting, corporate finance, corporate governance and their interfaces. The interfaces are relevant in many areas such as financial reporting and communication, valuation, financial performance measurement and managerial reward and control ...