Banking, economic growth, market structure, and institutional quality through the perspective of business performance and responsibility

Hatem Elfeituri

Home
Journals
Responsible Business Review
Issues of the Journal
Volume 1
2025 Issue 1
Banking, economic growth, market structure, and institutional quality through the perspective of business performance and responsibility

Journal menu

Banking, economic growth, market structure, and institutional quality through the perspective of business performance and responsibility

Hatem Elfeituri

https://doi.org/10.22495/rbrv1i1p1

Abstract

This paper reviews the theoretical foundations and implications of the role of banking in promoting economic growth. Based on financial intermediation theory, the paper underscores the crucial role of banks in facilitating the optimal allocation of resources, managing risks, and supporting economic development. Additionally, this paper addresses the differences between the structure-conduct-performance (SCP) hypothesis and the efficiency hypothesis (EH) and recognizes how each approach influences the banking industry in different contexts, with a particular focus on emerging and developed economies. Also, the paper highlights the importance of regulatory framework and institutional quality in shaping the effectiveness of banking systems, emphasizing the need for balanced regulation to promote stability without stifling innovation. According to these visions, policymakers should focus on stimulating competition, reinforcing regulatory and governance structures, and boosting technological advancements to improve banking efficiency. Furthermore, digital banking and financial inclusion are needed to enhance accessibility and competitiveness. Policymakers and regulators should implement a holistic approach that prioritizes innovation, regulatory quality, and financial stability to safeguard sustainable economic growth.

Keywords: Banking, Performance, Responsibility, Growth, Structure

Authors’ individual contribution: The Author is responsible for all the contributions to the paper according to CRediT (Contributor Roles Taxonomy) standards.

Declaration of conflicting interests: The Author declares that there is no conflict of interest.

JEL Classification: F63, G2, G21

Received: 11.03.2025
Revised: 14.04.2025; 30.04.2025
Accepted: 16.05.2025
Published online: 19.05.2025

How to cite this paper: Elfeituri, H. (2025). Banking, economic growth, market structure, and institutional quality through the perspective of business performance and responsibility. Responsible Business Review, 1(1), 8–16. https://doi.org/10.22495/rbrv1i1p1

Amount: 14 EUR

The payment can be made with credit/debit card via secure payment system provided by Ukrainian processing center. During the payment, you will probably receive an SMS from your bank with the password to confirm the transaction. The price in Euro is an oriented one. The payment will be charged in UAH according to the exchange rate of your payment card provider. Once the payment is made we will process it ASAP and our representative will contact you to deliver the service/confirm the payment.