The Impact of Digital Financial Inclusion and Bank Competition on Bank Stability in Sub-Saharan Africa

The last few years have witnessed a rapid development in digital finance that may threaten the manner which traditional financial services are being used. It opens up new opportunities for low-income groups and small businesses limited or no access to formal services. Thus, inclusion plays vital role boosting country’s inclusion, fulfilling some sustainable goals achieving higher economic growth. This study builds on measure of examine impact bank competition stability Sub-Saharan Africa period 2014 2020 using two-step System Generalised Method Moments. An index z-score, Herfindahl–Hirschman Index (HHI), non-performing loans were used as data variables. findings reveal has significant positive relationship with (z-score) negative loans. also found effect (HHI) line competition-fragility view. Policymakers should ensure literacy all since it feeds into reduces insolvency. They find ways enhancing On practical implications, calls strategic measures preserve stability, such complementing competition.