scholarly journals When formal finance meets the informal: the case of Wenzhou

2020 ◽  
Author(s):  
Ding Chen ◽  
Simon Deakin
Keyword(s):  
Formal Finance

scholarly journals Financial Inclusion Measurement in the Least Developed Countries in Asia and Africa

2021 ◽  
Author(s):  
Alicia Girón ◽  
Amirreza Kazemikhasragh ◽  
Antonella Francesca Cicchiello ◽  
Eva Panetti
Keyword(s):  
Young People ◽  
World Bank ◽  
Developed Countries ◽  
Financial Inclusion ◽  
Least Developed Countries ◽  
Formal Finance ◽  
Econometric Technique ◽  
Innovative Approaches

AbstractThe purpose of this paper is to examine the determinants of financial inclusion in the least developed countries in Asia and Africa. We used World Bank data to estimate the probit econometric technique in the studied countries. The results show that young people and women are groups excluded from financial inclusion and that education and income are two of the key pillars for increasing financial inclusion. Furthermore, the results reveal that a higher level of financial inclusion increases the level of official savings in countries, which in turn promotes their development. The findings of this study are beneficial for policymakers in the least developed countries to promote innovative approaches to enhance the involvement of excluded people in formal finance.

scholarly journals Improving the Use of Islamic Banking Services in Financing Investment Projects in Uzbekistan

2021 ◽  
Vol 11 (2) ◽  
pp. 2205-2220
Author(s):  
Dilmurod Yusupaliyevich Khujamkulov ◽  
Ruhiddin Khusniddin Ogli Zayniddinov ◽  
Dilmurod Rakhmatullayevich Ergashev ◽  
Mamajon Akhmatjonovich Mamatov ◽  
Khusniddin Fakhriddinovich Uktamov
Keyword(s):  
Financial Services ◽  
Financial Inclusion ◽  
The Other ◽  
Islamic Banking ◽  
Major Objective ◽  
Banking Services ◽  
Investment Projects ◽  
Conventional Banks ◽  
Religious Reasons ◽  
Formal Finance

Financial inclusion is remained low level by the majority of households and firms in Uzbekistan, instead of using formal finance, they are more partial to save and borrow informally. In this case, both indicate the high cost of finance as the top reason for not using it. Moreover, households, which are mostly Muslim, declare that religious reasons prevent them from using formal finance, as only conventional finance is available. The result of the survey was passed between a number of households and entrepreneurs that most of them claimed to use Islamic banking products. On the other hand, there are not created main mechanisms, infrastructure, and other important devices to regulate Islamic banking services in the country. The major objective of this study was to investigate there were used some Islamic banking products under some conventional banks for two decades and we have discussed the empirical experiences in Uzbekistan as well as given recommendations for improving the use of Islamic financial services related to foreign experiences and the result of the survey.

scholarly journals Engendering Women’s Access to Credit through Financial Inclusion in India

2016 ◽  
Vol 8 (6) ◽  
pp. 201
Author(s):  
Jaya Mathew ◽  
Reeba Kurian
Keyword(s):  
Financial Inclusion ◽  
Access To Credit ◽  
Representation Of Women ◽  
Self Help ◽  
Reserve Bank ◽  
National Bank ◽  
The Government ◽  
Self Help Groups ◽  
Formal Finance ◽  
Women In India

<p>Government of India and Reserve Bank of India has undertaken a lot of measures to mitigate the problem of financial inclusion in India. The emergence of Self Help Groups (SHGs) and SHG-Bank linkage Programme have helped extensively to strengthen the poor especially women. In India due to social and cultural reasons women face greater challenges in access to formal finance.</p><p>This study highlights the representation of Women in Self Help Groups (WSHGs) and SHG-Bank Linkage programmes undertaken by the Government of India (GOI) and National Bank for Agriculture and Rural Development (NABARD) and tries to establish that these initiatives have improved women’s access to finance in India.</p>

scholarly journals Participation, Income Effect and Challenges of Village Savings and Loans Program in Garu and Tempane Districts of the Upper East Region, Ghana

2021 ◽  
pp. 123-135
Author(s):  
Gifty Sienso ◽  
Abdul-Karim Khidir Nasow ◽  
Munkaila Lambongang
Keyword(s):  
Annual Income ◽  
Savings And Loans ◽  
East Region ◽  
Effect Model ◽  
Active Labor ◽  
Upper East Region ◽  
The Government ◽  
Rural Dwellers ◽  
Formal Finance ◽  
The Impact

Village Savings and Loans Associations (VSLAs), have the aim of reducing poverty and creating assets to rural dwellers who have limited access to formal finance due to high collateral requirements. However, since the implementation of VSLAs in the Garu and Tempane districts for over a decade, there is inadequate evidence as to the impact of VSLAs on the lives of the participants. Not only that, there is the need to find out the current and anticipated challenges faced by the participants in the program. This study analyzed the effect of VSLAs on the income of households in Garu and Tempane districts. Data was collected from 100 respondents, 50 direct beneficiaries and 50 non beneficiaries from 3 and 2 communities in Garu and Tempane districts respectively. A Heckman treatment effect model was used to analyze the determinants of participation and the effect of participation on income. The results showed that participants of the VSLA program had an annual income of about GH₵ 2016.60 more than the non-participants. Decision to join VSLAs is mainly influenced by age, the years a respondent spends in the community, the number of active labor force in a household and whether a respondent is a native or migrant. However, based on the challenges identified, it is recommended that the government and other institutions interested in rural development should institute appropriate policies that will help enhance participation in the program. Also, the associations should enforce tougher sanctions on members who absent themselves from meetings without prior notice.

When does informal finance help exports of emerging market firms? A contingent perspective

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Nitin Pangarkar ◽  
B. Elango
Keyword(s):  
Emerging Markets ◽  
International Business ◽  
Home Country ◽  
Emerging Market ◽  
Interactive Effect ◽  
Informal Finance ◽  
Content Type ◽  
Time Period ◽  
Emerging Market Firms ◽  
Formal Finance

Purpose The purpose of this study is to examine whether the usage of informal finance helps exports of emerging market firms. Design/methodology/approach The study analyzes a large dataset of observations on emerging market firms. To address the issue of a non-random sample and correct for self-selection in the regression analyzes, this paper uses the two-stage Heckman procedure. In the first stage, this study uses a sample of 74,148 firms from 135 countries over an 11-year time period (2006 to 2016). In the second stage, which includes only firms involved in exports, the analyses are based on 13,608 observations on firms from 135 countries over the same time period. Findings The study finds that the usage of informal finance helps exports of emerging market firms. Furthermore, the interactive effect between informal finance and home country affluence also influences exports. Research limitations/implications The analyses do not account for destination market characteristics such as size and growth. Practical implications The study suggests that emerging market firms should not shy away from using informal finance which can often be more convenient, and sometimes cheaper, than formal finance. Informal finance’s timeliness might be particularly useful for pursuing strategies such as exporting. Originality/value Studies in international business implicitly assume that finance is available for pursuing strategies such as exports or foreign direct investment. However, formal finance is scarce in emerging markets. By drawing a linkage between informal finance and exports in emerging markets, the study adds to the international business literature. The study also examines joint and interactive effects of home country characteristics and deployment of informal finance on exporting.

ICT for Improving Financial Access in Informal Sector

2018 ◽  
Vol 7 (2) ◽  
pp. 17-30
Author(s):  
Mwanaidi Shafii Msuya
Keyword(s):  
Communication Technology ◽  
Informal Sector ◽  
Economies Of Scale ◽  
Sub Saharan Africa ◽  
Access To Finance ◽  
Digital Revolution ◽  
Digital World ◽  
Information And Communication ◽  
Sub Saharan ◽  
Formal Finance

Access to finance is an important factor for the sustainability and growth of business. Lack of finance means that, the business will operate under-optimal and cannot enjoy economies of scale. This article explores the difficulties of informal sector access to formal finance. The author offers means by which information and communication technology (ICT) can help bridge that gap. The study carried out asystematic literature review where several articles from Sub-Saharan Africa were reviewed. The findings show that access to finance is constrained by information asymmetry, lack of collateral, business informality, and bureaucratic procedures for accessing finance. ICT has potential to overcome these challenges by streamlining information flow, providing online collateral registration and reducing administrative processes for loan processing, disbursement and repayment. The findings suggest that, despite the big digital revolution in Africa, little has been done to align the digital world with the challenges of the informal sector.

CREDIT SYSTEMS Local Suppliers of Credit in the Third World, 1750–1960. Edited by GARETH AUSTIN and KAORU SUGIHARA. London: Macmillan Press, 1993. Pp. vii + 318. £40 (ISBN 0-333-52320-2).

1997 ◽  
Vol 38 (1) ◽  
pp. 123-177
Author(s):  
JANE I. GUYER
Keyword(s):  
Social History ◽  
Third World ◽  
Roller Coaster ◽  
Wall Street ◽  
The Third ◽  
Monetary System ◽  
Regulatory Frameworks ◽  
Large Numbers ◽  
The Third World ◽  
Formal Finance

In an era when innovation in money and its various market dynamics is advancing at unprecedented speed, Western heroic optimism about the potentials that are unleashed by the logics of the world monetary system is distinctly tinged with fear: of massive outstanding deficits, whirlwind destruction of smaller economies, a roller-coaster rise on Wall Street, and sheer inappositeness to large numbers of development challenges. Old financial institutions have to create new forms of credit to address, for example, the transformation of the former socialist economies or the restoration of war-torn societies and polities. The enormous power of formal finance and its equally enormous limitations, and the contentious set of regulatory frameworks that surround both, should stimulate a new round of scholarship about what used to be termed ‘finance capital’ in modern social history.

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