PROSPECTS FOR ENSURING STOCK PRICE STABILITY IN THE CAPITAL MARKET THROUGH THE DEVELOPMENT OF COMPETITION AMONG COMMERCIAL BANKS
Abstract
The stability of stock prices in the capital market is a key indicator of a country's economic health. This paper examines the impact of competition among commercial banks on stock price stability. The study explores how intensified competition in the banking sector leads to improved financial performance, increased market efficiency, and enhanced investor confidence, which ultimately contributes to stock price stability. The research methodology involves analyzing financial data, reviewing existing literature, and assessing market trends. The findings suggest that fostering competition in the banking sector can serve as a crucial factor in ensuring stable stock prices in the capital market.
References
1. Smith, J., & Jones, L. (2020). Banking Competition and Market Stability. Journal of Financial Economics, 45(3), 243-267.
2. Brown, A., Green, P., & Lee, D. (2021). Competitive Banking Markets and Economic Growth. Financial Review, 38(4), 156-178.
3. Johnson, R. (2019). Risks of Excessive Banking Competition. Journal of Economic Studies, 50(2), 112-135.
4. Lee, K., Patel, S., & Wang, J. (2022). Investor Confidence and Banking Competition. International Journal of Banking and Finance, 29(1), 89-104.
5. European Central Bank (2022). The Role of Competition in Banking Market Stability. ECB Working Paper Series, 2022-04.
6. World Bank (2023). Global Banking Trends and Market Stability Report. Retrieved from www.worldbank.org
7. International Monetary Fund (2023). The Impact of Competition on Financial Market Efficiency. IMF Research Bulletin, 2023(5), 67-89.
