The Moderating Role of Supervision and Regulation on the Fintech-Financial Inclusion-Financial Stability Nexus in Sub-Saharan Africa

Tough Chinoda () and Forget Mingiri Kapingura ()
Additional contact information
Tough Chinoda: University of Fort Hare
Forget Mingiri Kapingura: University of Fort Hare

Chapter Chapter 10 in Shadow Banking and Financial Risk in Emerging and Developing Markets, 2025, pp 253-273 from Palgrave Macmillan

Abstract: Abstract Purpose The study examines the moderating effect of supervision and regulation on the relationship between fintech, financial inclusion, and financial stability. Design/Methodology/Approach: Using a sample of 11 countries in Sub-Saharan Africa over the period 2016 to 2021, the study employed the dynamic panel two-step Generalized Method of Moments estimators to determine the relationship. Findings: The results show that supervision and regulation moderate the fintech-financial stability nexus and the financial inclusion-financial stability nexus in SSA. Practical Implications: The findings imply that supervision and regulation reduce the negative effects of fintech on financial stability. Our findings provide some important implications for policymakers and regulators in SSA. In terms of the efforts being made to grow FinTechs in developing countries, the results of our study warn regulators that such efforts affect the stability of the financial system to a greater extent. Thus, to sustainably develop FinTechs, countries in SSA must make efforts aimed at ensuring effective supervision and regulation of these FinTechs. Originality/Value: The study is carried out at cross-country level, with a focus on the SSA region. The study contributes to the debate on the role of supervision and regulation on the fintech-financial inclusion-financial stability nexus in SSA.

Keywords: Fintech; Financial inclusion; Financial stability; Supervision; Regulation; SGMM; Sub-Saharan Africa (search for similar items in EconPapers)
Date: 2025
References: Add references at CitEc
Citations:

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:pal:pmschp:978-3-031-86224-3_10

Ordering information: This item can be ordered from
http://www.palgrave.com/9783031862243

DOI: 10.1007/978-3-031-86224-3_10

Access Statistics for this chapter

More chapters in Palgrave Macmillan Studies in Banking and Financial Institutions from Palgrave Macmillan
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().