The Impact of Digital Financial Services on Banking Stability Under the Moderating role of Financial Inclusion: Evidence from Egypt | ||
| The Academic Journal of Contemporary Commercial Research | ||
| Article 1, Volume 5, Issue 1, March 2025, Pages 1-40 PDF (1.01 M) | ||
| Document Type: Original Article | ||
| DOI: 10.21608/ajccr.2025.287891.1109 | ||
| Authors | ||
| Osama Wagdi* 1; Atef Fathi2 | ||
| 1Faculty of Management, Economics and Business Technology, Egyptian Russian University, Egypt | ||
| 2Thebes Higher Institute of Management and Information Technology, Egypt. | ||
| Abstract | ||
| This study investigates Egypt’s banking sector, focusing on the impact of digital financial services (DFS) on banking stability under the moderating role of financial inclusion amid the debate between "innovation-growth" and "innovation-fragility," perspectives. Using balanced panel data from 30 Egyptian banks spanning 2011–2022 and employing hierarchical regression analysis and cross-sectional analysis, the study finds that DFSs play a crucial role in promoting financial inclusion. Moreover, financial inclusion significantly moderates banking stability, as evidenced by using non-performing loans or capital adequacy proxies. Therefore, the Egyptian context supports "innovation-growth" by demonstrating that DFSs directly support financial inclusion and indirectly contribute to banking stability. Further research can solidify our understanding of these relationships and guide policymakers in crafting effective strategies for a more inclusive and stable financial system. | ||
| Keywords | ||
| Digital Financial Services; DFS; Banking Stability; Financial Inclusion; Egypt | ||
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