Financial Inclusion Policies and Supply of Domestic Credit to Private Sector

2019 ◽  
pp. 1-13
Author(s):  
Suwastika Naidu ◽  
Yashnita Naicker
Keyword(s):  
Private Sector ◽  
Financial Inclusion ◽  
Domestic Credit

scholarly journals Do Remittances Enhance Financial Development in Transitional Markets?

2019 ◽  
Vol 22 (4) ◽  
pp. 73-89
Author(s):  
Kunofiwa Tsaurai ◽  
Patience Hlupo
Keyword(s):  
Human Capital ◽  
Stock Market ◽  
Private Sector ◽  
Financial Development ◽  
Positive Influence ◽  
Transitional Economies ◽  
Human Capital Development ◽  
Domestic Credit ◽  
Capital Development ◽  
Market Capitalisation

The paper explored (1) the impact of remittances on financial development and (2) whether the interaction between remittances and human capital development had an influence on financial development in transitional economies using the dynamic GMM approach, with data ranging from 1996 to 2014. Remittances were found to have had a non‑significant positive influence on financial development in transitional economies when stock market turnover, stock market value traded, domestic credit to the private sector by banks, and public bond sector development were used as measures of financial development. When stock market capitalisation, domestic credit to the private sector by financial sector, and private bond sector development were used as measures of financial development, remittances had a non‑significance negative effect on financial development. Using all other measures of financial development except stock market capitalisation (which produced a negative sign), the interaction between remittances and human capital development had an insignificant positive influence on financial development. Transitional economies are therefore urged to avoid over‑relying on remittance inflow and human capital development as sources of financial development.

scholarly journals Linkages between Dynamic Financial Inclusion and Institutions in ASEAN 8

2020 ◽  
Vol 21 (2) ◽  
pp. 174-186
Author(s):  
Tunjung Sekar Laksmi Pandhit ◽  
Malik Cahyadin
Keyword(s):  
Credit Card ◽  
Political Stability ◽  
Dynamic Panel Data ◽  
Financial Inclusion ◽  
Policy Implications ◽  
Debit Card ◽  
Quality Of Institutions ◽  
Domestic Credit ◽  
Asean Countries

Financial inclusion becomes a priority concern with governments in ASEAN countries such as reduce the  lack  of  access  for  public  to  formal  financial  institutions.  Moreover,  there  is  an  empirical  gap  of linkages between institutions and financial inclusion. Thus, the study aims to estimate the effect of institutions on dynamic financial inclusion. Three financial inclusion indicators are employed, namely: debit card ownership, credit card ownership, and domestic credit to GDP ratio. Institutional indicators consist of six indicators following world governance indicators. The research observations are about 88 consisting of cross-sections were eight of ASEAN countries and the time series was 2008-2018. Indeed, a dynamic panel data was employed. In general, the findings exhibit that FEM is the appropriate model under Hausman test. Specifically, debit card ownership and credit card ownership were determined by voice and accountability, and rule of law while domestic credit to GDP ratio was determined by some indicators of institutions such as voice and accountability, political stability, regulatory quality, and control of corruption. Hence, the policy implications were directed to improve the quality of institutions both country and ASEAN levels. The high quality of institutions will stimulate the acceleration and expansion of financial inclusion in ASEAN countries.

Foreign banks to bet on Mexico despite risks

2020 ◽  
Keyword(s):  
Private Sector ◽  
Financial Inclusion ◽  
Foreign Banks ◽  
Content Type ◽  
The Government

Significance The contraction is Mexico’s first in ten years and marks President Andres Manuel Lopez Obrador (AMLO)’s first full year in office. Foreign banks nevertheless continue to bet on Mexico, setting aside the uncertainty generated by AMLO’s policies. Impacts Banks’ willingness to lend could be important for the recovery of the troubled economy. The banking sector’s support for some of AMLO’s initiatives will help build private sector faith in them. Banks will increasingly collaborate with the government to improve financial inclusion.

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