Financial Inclusion: Can it Meet Multiple Macroeconomic Goals?

Ratna Sahay, Martin Cihak (), Papa N'Diaye, Adolfo Barajas, Srobona Mitra, Annette Kyobe, Yen Mooi and Seyed Reza Yousefi

No 2015/017, IMF Staff Discussion Notes from International Monetary Fund

Abstract: Using several recently available global datasets, this Staff Discussion Note examines macroeconomic effects of financial inclusion. It finds significant benefits to economic growth from financial inclusion, but the benefits diminish as financial inclusion and depth become large. Broadening access to credit can compromise economic and bank stability in countries with weak bank supervision. Other forms of financial inclusion—such as access to and use of bank accounts, branches, and ATMs—do not hurt stability, and can be promoted extensively. The note finds that gaps in financial inclusion are associated with economic inequality, but the association appears relatively weak.

Keywords: SDN; bank stability; bank; account ownership; share; return; financial inclusion; economic growth; economic stability; financial stability; gender; inequality; banking sector; external finance; bank board; bank credit; share of woman; account holder; Financial sector stability; Women; Credit; Global; South Asia (search for similar items in EconPapers)
Pages: 33
Date: 2015-09-15
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Citations: View citations in EconPapers (95)

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