The impact of health expenditure on the stability of the banking sector considering the role of financial literacy and financial inclusion: a case study of selected oil countries

Subject Areas : -Health economy

Marwan abdulrazak muter ¹ , hosein sharifi renani ² , adeeb GHasem SHandi ³ , bahar hafezi ⁴

1 - PhD student in Economics, Isfahan branch (Khorasgan), Islamic Azad University, Isfahan, Iran
2 - Associate Professor of Economics, Isfahan Branch (Khorasgan), Islamic Azad University, Isfahan, Iran
3 - Professor of Economics at Kut University, Wasit, Iraq
4 - Assistant Professor of Economics, Isfahan Branch (Khorasgan), Islamic Azad University, Isfahan, Iran

Received: 2024-02-11 Accepted : 2024-03-13 Published : 2024-03-11

Keywords: health and health expenditure, financial stability, financial i nclusion, financial literacy.,

Abstract :

Introduction: The banking industry is very important in the global economy; therefore, the stability of this sector is important and it is necessary to examine the factors affecting it. Among these factors, we can refer to health expenses. Inclusion and financial literacy are also mentioned as other factors affecting banking stability. Methods: In order to analyze the data, panel data regression method was used. The statistical sample of the research is 12 selected oil exporting countries including Algeria, Indonesia, Ecuador, Iraq, Iran, Libya, Kuwait, Nigeria, Venezuela, Saudi Arabia, Angola and UAE. Results: The findings of the research showed that the health expenditure variable had positive and significant effects on the bank stability variable. Financial inclusion had negative and significant effects on banking stability variable, while financial literacy had positive and significant effects on banking stability in the studied countries. Conclusion: A strong health care system provides improved medical facilities, which increases the ability and longevity of households. This increase in life expectancy and ability improves the income of households, and as a result, the amount of savings and bank deposits has increased, which can improve the financial stability of banks through the strengthening of banks' capital.

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