Bank Concentration and Stability in Central Asia: The Effect of Capital Regulation and Financial Freedom

In this study, the interrelation between bank concentration and stability is examined, focusing on joint impact of capital regulation financial openness. Using data from Global Financial Development Database provided by World Bank Index Freedom The Heritage Foundation Wall Street Journal, a sample five countries in Central Asia was obtained, specifically during 1993-2017. results show that relationship supports concentration-stability hypothesis. Moreover, higher well-capitalized banks increase stability. However, effect freedom negative significant. Capital supervision authority control sector need to be strengthened solve instability.