Bank Stability and Market Concentration in the Emerging Capital Markets of Southeast Asia

Sound macroeconomic fundamentals, financial system resilience, and, bank stability are among the core characteristics of the emerging capital markets of the upper middle income, as well as the low middle income countries of the Southeast Asian Nations (ASEAN). For a region that is vulnerable to external shocks, financial system resilience is frequently denoted by bank stability due to the interdependence between the banking sector and the overall health of the capital markets in a country. This study focuses on the market concentration and stability nexus which signifies that more market concentration, leading to higher capitalization, in the banking industry of the low middle countries of the ASEAN leads to more stable banks. It can therefore be observed that the small developing countries of the ASEAN, whose banking industries vary in size and market concentration, all manifest pre-pandemic, and 2020-2021 pandemic-year bank stability in spite of their vulnerability to various global headwinds.

Dr. Jovi Clemente Dacanay is the Program Director of the Ph.D. in Business Economics Program of the UA&P School of Economics. She holds the Professorial Chair for International Migration and OFW Remittances and is currently the Treasurer and a Trustee of the Philippine Social Science Council, and the Philippine Economic Society. She crafted Social Economics, a course using economics and Catholic social thought to propose ethical solutions to socio-economic issues.

Please join us via Zoom! You may register HERE.