An Asymmetric Analysis of the Influence That Economic Policy Uncertainty, Institutional Quality, and Corruption Level Have on India’s Digital Banking Services and Banking Stability

Motivated by the unprecedented high levels of recent economic policy uncertainty, current study examines influence institutional quality, and corruption level on Indian banking stability growth digital financial services. Using Baker et al.’s uncertainty index nonlinear autoregressive distribution lag model data set variables from 2004 to 2019, we infer following findings. The unit root structural break tests confirm presence breaks mixed order integrations. Besides, long-run results substantiate a asymmetric relationship between explanatory (economic level) outcome (digital services stability). reveals that 1 percent increase in increases nonperforming loans (proxy measure stability) 1.48 decreases Z-score ?1.12 percent. Likewise, reduces progress ?1.23 India. In addition, also depicts cointegration variables. Overall, shows significant evidence corruption, regulation hampers growth. offers several implications understand adverse effects sector.