The sustainable practices of multinational banks as drivers of financial inclusion in developing countries

Fernando Úbeda, Alvaro Mendez () and Francisco Javier Forcadell Martínez

LSE Research Online Documents on Economics from London School of Economics and Political Science, LSE Library

Abstract: Lack of access to banking generates inequality in the developing world; therefore, financial inclusion is a crucial objective of the Sustainable Development Goals. We investigate the impact of sustainable practices of multinational banks (MNBs) on financial inclusion. A sample of 275 MNBs, 16 developing countries, and 16,618 individuals yield robust evidence confirming the positive effect of such practices on financial inclusion. Specifically, we find that as MNBs become sustainable, the use of mobile banking intensifies. This finding is consequential because mobile banking is one of the most powerful means to achieve financial inclusion in the developing world.

Keywords: sustainable banking; multinational banks; financial inclusion; mobile banking; sustainable development goal (search for similar items in EconPapers)
JEL-codes: D63 G00 G20 G21 Q01 Q56 (search for similar items in EconPapers)
Pages: 11 pages
Date: 2023-01-01
New Economics Papers: this item is included in nep-env, nep-fle, nep-mfd and nep-pay
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4)

Published in Finance Research Letters, 1, January, 2023, 51. ISSN: 1544-6123

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http://eprints.lse.ac.uk/116428/ Open access version. (application/pdf)

Related works:
Working Paper: The sustainable practices of multinational banks as drivers of financial inclusion in developing countries (2022)
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Persistent link: https://EconPapers.repec.org/RePEc:ehl:lserod:116428

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