Financial Inclusion: Implications for Public Policy
Hossein Askari (),
Zamir Iqbal and
Abbas Mirakhor
Chapter Chapter 9 in Challenges in Economic and Financial Policy Formulation, 2014, pp 157-177 from Palgrave Macmillan
Abstract:
Abstract A growing body of evidence suggests that financial development and improved access to finance (also referred to as financial inclusion) is likely not only to accelerate economic growth but also to reduce income inequality and poverty in a country. Despite the essential role played by financial services in the progress of efficiency and equality in a society, 2.7 billion people (70% of the adult population) in emerging markets still have no access to basic financial services, and a great many of the them come from countries with predominantly Muslim populations (Demirgüç-Kunt, Beck, and Honohan, 2007). In conventional finance, financial access is especially an issue for the poorer members of society, including potential entrepreneurs. They are commonly referred to as “nonbanked” or “unbankable,” and in the case of potential entrepreneurs, they invariably lack adequate collateral to access conventional debt financing. While access to finance may be important for economic growth, the private sector may not be willing to provide financing to some areas or some segments of the economy because of the high cost associated with credit assessment and credit monitoring and because of the lack of acceptable collateral.
Keywords: Risk Sharing; Financial Inclusion; Muslim Country; Microfinance Institution; Islamic Finance (search for similar items in EconPapers)
Date: 2014
References: Add references at CitEc
Citations:
There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.
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:pal:psibcp:978-1-137-38199-6_9
Ordering information: This item can be ordered from
http://www.palgrave.com/9781137381996
DOI: 10.1057/9781137381996_9
Access Statistics for this chapter
More chapters in Palgrave Studies in Islamic Banking, Finance and Economics from Palgrave Macmillan
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().