Do Central Banks Have a Role in Financial Inclusion?

2021 ◽  
pp. 119-137
Author(s):  
David Ferrand ◽  
Ignacio Mas
Keyword(s):  
Financial Institutions ◽  
Mobile Networks ◽  
Financial Stability ◽  
Central Banks ◽  
Financial Inclusion ◽  
Policy Makers ◽  
Bank Management ◽  
Formal Services

The chapter focuses on the role of central banks in fostering financial inclusion and specifically on the potential impact of financial inclusion on financial stability and economic growth. It examines the expansion of financial inclusion, from the reliance on informal solutions to the availability of formal services, through the engagement of policy-makers who have impacted on the way the financial sector has developed to be increasingly networked, driven by digitization, and supported by digital mobile networks. It highlights Kenya’s global success in financial inclusion; Kenya is used as a case study in central bank management, financial inclusion, and its contribution to economic development. It concludes by pointing out the risks associated with the absence of countervailing policies by financial institutions which may lead to unexpected losses to the financial system, and ultimately a banking crisis.

scholarly journals Role of Financial Inclusion to Stability: The Case of Indonesia’s Sharia Banking

2019 ◽  
Vol 10 (1) ◽  
pp. 7-15
Author(s):  
Estu Widarwati ◽  
Pindykurnia Sari ◽  
Nunik Nurmalasari
Keyword(s):  
Financial Institutions ◽  
Financial Services ◽  
Financial Stability ◽  
Financial Inclusion ◽  
Public Access ◽  
Relationship Of ◽  
The Relationship ◽  
Community Access ◽  
Positive Effect

Abstract Public access to the services of financial institutions determines the revenues amount of financial institutions. The growth of bank account helps banks to manage the financing service that provides for the community. This study examines the relationship of financial inclusion and financial stability, especially in Indonesia’s Sharia banking. Financial inclusion defined as community access to financial services which peroxided by deposits, while the financial stability of Sharia banking is measured by Non Performing Financial (NPF). Samples include financial data of 5 sharia banks during the study period from 2011 to 2016 were analyzed using classical assumption test and regression test. The results of study found that the deposits as proxy of financial inclusion had a positive effect to stability of financial.

Effects of Financial Inclusion on Startup Establishment in OECD Countries

2018 ◽  
Vol 34 (1) ◽  
Author(s):  
Dinh Thi Thanh Van ◽  
Nguyen Thuc Trang
Keyword(s):  
Success Factors ◽  
Oecd Countries ◽  
Financial Inclusion ◽  
Economic Research ◽  
Mobile Banking ◽  
Policy Makers ◽  
Academic Researchers ◽  
Financial Index ◽  
Enterprise Survey

Financial inclusion and startup are two topics, which recently get attention of academic researchers and policy makers in Vietnam. One of the important factors for setting up a successful startup is the financial capability of the owners. Therefore, financial inclusion has a strong correlation with startup establishment. This article tested the effects of several factors in financial index (findex) developed by World Bank on startup establishment in some OECD countries. The result showed that borrowing from friends and relatives along with from credit institutions and opening a debit account at banks have  significant impacts on startup establishment in these countries. Finally, the article presented several recommendations for policy makers to stimulate the startup growth in Vietnam in the next time. Key words startup, financial inclusion, startup establishment References 1. Colman Msoka (2015), “Financial inclusion and microfinance in Tanzania”, Inclusive growth: Tanzania Country Report2. Endeavor-GEM, 2011, “High-Impact Entrepreneurship Global Report”3. Eric Ries, 2012, “The Lean Startup” book”, http://www.stpia.ir/files/The%20Lean%20Startup%20.pdf 4. European Startup Monitor, 2015, “European Startup Monitor 2015”, http://europeanstartupmonitor.com/fileadmin/presse/download/esm_2015.pdf 5. Jennifer Dahlin Ivarsson (2014), “Mobile-banking and entrepreneurship: Is there a link? A case study on South Africa”, Nationalekonomiska Institutionen, Box 7082, ISSN 0283 – 15896. Maher Al-Mahouq (2010), “Success factors of small and medium-sized enterprises(SMEs): The case of Jordan”, Anadol University jourmal of social sciences, Cilt/Vol.: 10 – Say/No:1-16 (2010)7. Mohammed S.Chowdhury (2013), “Success factors of entrepreneurs of small and medium sized enterprises: Evidence from Banladesh”, Business and Economic Research, ISSN 2162 – 4860, 2013, Vol.3, No.2.8. OECD, 2015, “Entrepreneurship at a Glance 2015”9. Roman Angela, 2011, “SME’s sector access to finance: An overview”10. Yao Wang, 2014, “What are the biggest obstacles to growth of SMEs in developing countries? An empirical evidence from an enterprise survey”, JED 210 Paper

An Analytical Approach to Cruise Tourism As an Option For Development: a Case Study of the Sultanate of Oman

2020 ◽  
Vol 15 (2) ◽  
pp. 95-109
Author(s):  
Heba Aziz ◽  
Osman El-Said ◽  
Marike Bontenbal
Keyword(s):  
Capital City ◽  
Sultanate Of Oman ◽  
Policy Makers ◽  
Cruise Tourism ◽  
The Impact ◽  
The Relationship ◽  
Average Expenditure ◽  
Return Intention

The objective of this study was to measure the level of cruise tourists' satisfaction as well as the relationship between satisfaction, recommendation, return intention, and expenditure. Also, the impact of factors such as nationality, length of the visit, and age on the level of expenditure was measured. An empirical approach for data collection was followed and a total of 152 questionnaires were collected from cruise tourists visiting the capital city of Oman, Muscat, as cruise liners anchor at Sultan Qaboos Port. Results of the regression analysis supported the existence of a causal relationship between satisfaction with destination attributes, overall satisfaction, recommendation, return intention, and expenditure. It was found that the average expenditure varies according to age and length of the visit. Recommendations for policy makers were suggested on how to increase the role of cruise tourism in strengthening the economy.

The Role of Mobile Money in Moderating Financial Exclusion: A Tanzanian Experience

2020 ◽  
Vol 2 ◽  
pp. 1-24 ◽  
Author(s):  
Deogratius Joseph Mhella
Keyword(s):  
Developing Countries ◽  
Financial Institutions ◽  
Banking Sector ◽  
Research Question ◽  
Microfinance Institutions ◽  
Mobile Money ◽  
Access To Credit ◽  
Financial Exclusion

Prior to the advent of mobile money, the banking sector in most of the developing countries excluded certain segments of the population. The excluded populations were deemed as a risk to the banking sector. The banking sector did not work with cash stripped and the financially disenfranchised people. Financial exclusion persisted to incredibly higher levels. Those excluded did not have: bank accounts, savings in financial institutions, access to credit, loan and insurance services. The advent of mobile money moderated the very factors of financial exclusion that the banks failed to resolve. This paper explains how mobile money moderates the factors of financial exclusion that the banks and microfinance institutions have always failed to moderate. The paper seeks to answer the following research question: 'How has mobile money moderated the factors of financial exclusion that other financial institutions failed to resolve between 1960 and 2008? Tanzania has been chosen as a case study to show how mobile has succeeded in moderating financial exclusion in the period after 2008.

scholarly journals Securitization of (bad) loans to Italian SMES: The role of the public guarantee

2021 ◽  
Vol 16 (4) ◽  
pp. 193-208
Author(s):  
Lucilla Bittucci ◽  
Stefano Marzioni ◽  
Pina Murè ◽  
Marco Spallone
Keyword(s):  
Financial Stability ◽  
Positive Impact ◽  
Central Banks ◽  
General Purpose ◽  
Recent Past ◽  
Balance Sheets ◽  
Access To Credit ◽  
The Public ◽  
Main Factors

This study investigates the main factors driving the evolution of the securitization of loans to Italian small and medium-sized enterprises (SMEs). The value of securitization increased in last two years, even though it has not been used as collateral for central banks. The disposal of non-performing loans (NPLs) may have been rather triggered by increasing attention of the international institutions to such an issue, within the general purpose of financial stability. The purpose of this paper is to interpret such a phenomenon focusing on Italian banks and restricting the analysis to the case of securitizations backed with loans to small and medium-sized enterprises (SMEs). The interesting result that emerges, supported by econometrically tested empirical evidence, is that given the orientation of international financial institutions, such as the ECB and the EBA, and reacting to incentives coming from the fiscal policy authorities for the public guarantee of loans, banks have been using securitization to reduce the burden on their bad balance sheets due to (NPLs). It was found that the public guarantee had a positive impact on SME securitization, whereas securitization in other sectors has not been affected significantly. Such evidence suggests that, in the absence of a public guarantee, the financial stability target would have been at risk, and the effectiveness of collateral-based policies in the recent past must be improved to enhance access to credit for SMEs.

scholarly journals PERAN PEMBIAYAAN MURABAHAH DALAM MENINGKATKAN USAHA BATU BATA (STUDI PADA BMT AS-SALAM KANTOR KAS NGERECO KANDAT KEDIRI)

1970 ◽  
Vol 5 (1) ◽  
pp. 64-76
Author(s):  
Muh Khoirul Anam ◽  
Haris Santoso
Keyword(s):  
Financial Institutions ◽  
Case Study Research ◽  
Lower Class ◽  
Qualitative Approach ◽  
Study Research ◽  
Islamic Financial Institutions ◽  
Conventional Banks ◽  
Depth Interviews

Financial institutions are currently needed by all people because financial institutions are considered to be quicker in providing business capital loans. Previously, conventional banks were the only financial institutions operating in the financial sector or loans to the community before Islamic financial institutions, now with the development of financial institutions sharia society mostly prefers sharia finance rather than conventional, plus BMT which operates in the middle to lower class, this is what causes many people to take Islamic financial institutions because they prioritize family systems, so this study focuses on: 1). How is the application of murabahah financing at BMT As-Salam to brick businesses in the Ngreco Kandat Kediri village, 2). What is the role of murabahah financing at BMT As-Salam towards brick business in the Ngreco Kandat Kediri village, 3). How did the brick business increase in the Kandat Kediri Ngreco village after obtaining murabahah financing at BMT As-Salam. Research on the role of murabahah financing in brick business uses a descriptive qualitative approach with a type of case study research that refers to the interpretive postpositivistic thinking paradigm. The technique of collecting data is in-depth interviews, observation and documentation. The results of this study indicate that the application of murabahah financing at BMT As-Salam is very different where loans for business capital of bricks that should use mudharabah or musyarakah at BMT These salads use murabaha. Besides that the role of BMT As-Salam is very influential on brick business and before BMT As-Salam arrived, brick entrepreneurs still had difficulty finding capital to improve their business but after taking murabahah financing at BMT As-Salam, their efforts experienced an increase and prosperity life.

scholarly journals The Role of Technology in Financial Inclusion-A Case Study Mobile Money Penetration in Ghana

2021 ◽  
Vol 8 (4) ◽  
pp. 19-34
Author(s):  
Samuel Nii Attoh Abbey
Keyword(s):  
Value Added ◽  
Financial Inclusion ◽  
Mobile Money ◽  
Face To Face ◽  
Platform As A Service ◽  
The Cost ◽  
Audit Trails ◽  
Game Changer

With the flagship success of M-Pesa, mobile devices have become an important tool to facilitate the financial inclusion of the previously unbanked population in developing countries. Following the success of M-Pesa in Kenya in 2007, mobile money technologies became widespread across Africa. Beginning in 2009, Ghana experienced exceptional adoption of Mobile Money technology. Many studies have examined the influence of mobile money on financial inclusion from a variety of perspectives, and many have concluded that mobile money is a game-changer in this regard. The Mobile Money concept has evolved based on introducing the other value-added services such as microloans, savings, and insurance portfolios. The researcher used a questionnaire and a face-to-face interview to obtain qualitative data for this study. Together with other research, the statistics revealed that Mobile Money transactions in Ghana had more than tripled since it became the most popular payment method. Over the last year, the platform as a service has created over 140,000 jobs and has shown to be the safest channel. It has several advantages, including lowering the cost of printing and keeping cash on hand, as well as decreasing fraud because the technology underlying it gives appropriate audit trails to prevent fraud and boost economic growth.

Collective action among rural poor

2019 ◽  
Vol 37 (1) ◽  
pp. 20-43
Author(s):  
George Okello Candiya Bongomin ◽  
John C. Munene ◽  
Joseph Mpeera Ntayi ◽  
Charles Akol Malinga
Keyword(s):  
Collective Action ◽  
Financial Institutions ◽  
Financial Intermediation ◽  
Financial Inclusion ◽  
Content Type ◽  
Mediating Role ◽  
The Poor ◽  
Bootstrap Approach ◽  
The Relationship

PurposeThe purpose of this paper is to establish the mediating role of collective action in the relationship between financial intermediation and financial inclusion of the poor in rural Uganda.Design/methodology/approachThe paper uses structural equation modeling (SEM) through bootstrap approach constructed using analysis of moment structures to test for the mediating role of collective action in the relationship between financial intermediation and financial inclusion of the poor in rural Uganda. Besides, the paper adopts Baron and Kenny’s (1986) approach to establish whether conditions for mediation by collective action exist.FindingsThe results revealed that collective action significantly mediates the relationship between financial intermediation and financial inclusion of the poor in rural Uganda. The findings further indicated that the mediated model had better model fit indices than the non-mediated model under SEM bootstrap. Furthermore, the results showed that both collective action and financial intermediation have significant and direct impacts on financial inclusion of the poor in rural Uganda. Therefore, the findings suggest that the presence of collective action boost financial intermediation for improved financial inclusion of the poor in rural Uganda.Research limitations/implicationsThe study used quantitative data collected through cross-sectional research design. Further studies through the use of interviews could be adopted in future. Methodologically, the study adopted use of SEM bootstrap approach to establish the mediating effect of collective action. However, it ignored the Sobel’s test and MedGraph methods. Future studies could adopt the use of alternative methods of Sobel’s test and MedGraph. Additionally, the study focused only on semi-formal financial institutions. Hence, further studies may consider the use of data collected from formal and informal institutions.Practical implicationsPolicy makers and managers of financial institutions should consider the role of collective action in promoting economic development, especially in developing countries. They should create structures and design financial services and products that promote collective action among the poor in rural Uganda.Originality/valueAlthough several scholars have articulated financial inclusion based on both the supply and demand side factors, this is the first study to test the mediating role of collective action in the relationship between financial intermediation and financial inclusion of the poor in rural Uganda using SEM bootstrap approach. Theoretically, the study combines the role of collective action with financial intermediation to promote financial inclusion. Financial intermediation theory ignores the role played by collective action in the intermediation process between the surplus and deficit units.

Journey of Financial Inclusion Driven by Indian Banking Industry

2018 ◽  
pp. 186-223
Author(s):  
Abhineet Saxena ◽  
Ashish Sharma
Keyword(s):  
Economic Development ◽  
Financial Institutions ◽  
Rural Areas ◽  
Rural Population ◽  
Banking Industry ◽  
Financial Inclusion ◽  
North Eastern ◽  
North Eastern Part ◽  
Made In

Financial institutions, especially banks, have proved to be a boon for the economic development of a country like India. An attempt has been made in the present chapter to analyze the state of financial inclusion and the role of banking in achieving full financial inclusion in India. The journey of financial inclusion through banking in India has been critically appraised. Some of the important outcomes that can be highlighted are increased banking access of rural population in past few years together with the huge expansion in banking infrastructure in rural areas. Banking in India has been transformed with the introduction of PMJDY, BC Model, etc. Increasing trend has been observed in IMPS and M-Wallet penetration. North-eastern part of the country is still a challenge in the way of financial inclusion. The journey of financial inclusion on the wheels of Indian banking industry is still in search of the ultimate destination, and it will take miles to achieve full financial inclusion.

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