EconPapers    
Economics at your fingertips  
 

FINANCIAL STABILITY AND FINANCIAL INCLUSION: THE CASE OF SME LENDING

Peter Morgan and Victor Pontines ()

The Singapore Economic Review (SER), 2018, vol. 63, issue 01, 111-124

Abstract: Developing economies are seeking to promote financial inclusion, i.e., greater access to financial services for low-income households and firms. This raises the question of whether greater financial inclusion tends to increase or decrease financial stability. A number of studies have suggested both positive and negative impacts on financial stability, but very few empirical studies have been made. This study focuses on the implications of greater financial inclusion for small and medium-sized enterprises (SMEs) for financial stability. It estimates the effects of measures of the share of bank lending to SMEs on two measures of financial stability — bank nonperforming loans and bank Z scores. We find some evidence that an increased share of lending to SMEs aids financial stability by reducing non-performing loans (NPLs) and the probability of default by financial institutions.

Keywords: Financial inclusion; financial stability; small and medium-sized enterprises (SMEs); SME lending (search for similar items in EconPapers)
Date: 2018
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2) Track citations by RSS feed

Downloads: (external link)
http://www.worldscientific.com/doi/abs/10.1142/S0217590818410035
Access to full text is restricted to subscribers.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:wsi:serxxx:v:63:y:2018:i:01:n:s0217590818410035

Ordering information: This journal article can be ordered from

DOI: 10.1142/S0217590818410035

Access Statistics for this article

The Singapore Economic Review (SER) is currently edited by Euston Quah

More articles in The Singapore Economic Review (SER) from World Scientific Publishing Co. Pte. Ltd.
Bibliographic data for series maintained by Tai Tone Lim ().

 
Page updated 2019-10-22
Handle: RePEc:wsi:serxxx:v:63:y:2018:i:01:n:s0217590818410035