Financial Regulation, Financial Inclusion and Competitiveness in the Banking Sector in SADC and SAARC Countries: The Moderating Role of Financial Stability

Financial inclusion is a widely used measure to improve the living standards of households and foster inclusive economic growth. Thus, financial one main policy objectives in developing countries. Besides, regulation (capital adequacy requirement) ensure stability. The objective this study examine effect on competitiveness 15 countries SADC (Southern Africa Development Community) region 8 SAARC (South Asian Association for Regional Cooperation) over period 2005–2018. result Feasible Generalized Least Squares (FGLS) estimation suggests that reduces hampers banking sector two regions. Furthermore, we find stability moderates negative inclusion, meaning financially stable banks remain competitive normally offer products services even if strong capital requirements are implemented. Additionally, increases region. implication focuses regulatory flexibility preserve need greater As practical implication, calls strategic measures such as complementing with literacy, fostering corporate governance.