Thoughts of Rural Development through Developing Financial Skills

2016 ◽  
Vol 2 (2) ◽  
Author(s):  
Vivek Kumar
Keyword(s):  
Financial Crisis ◽  
Financial Literacy ◽  
Financial Stability ◽  
Well Being ◽  
Financial Inclusion ◽  
Money Management ◽  
Extensive Literature ◽  
Community Interest ◽  
Wide Range ◽  
Financial Awareness

The issue of financial literacy is of greater concern in developed countries than the developing nations. Financial literacy gained far more importance after the financial distresses and become the pre-requisite with the objective to avoid financial crisis by attaining financial stability. In recent years, financial literacy has gained the attention of a wide range of major banking companies, government agencies, grass-roots consumer and community interest groups, and other organizations. Interested groups, including policymakers, are concerned that consumers residing in rural India lack a working knowledge of financial concepts and do not have the tools they need to make decisions most advantageous to their economic wellbeing. Such financial literacy deficiencies can affect an individual's or family's day-to-day money management and ability to save for long-term goals such as buying a home, seeking higher education, or financing retirement of rural people. Ineffective money management can also result in behaviours that make consumers vulnerable to severe financial crisis. This paper tries to explore all those major concepts and measures which can be extremely helpful in the developing not only the rural living of standard but also the mindset of common people. We can also see the extensive literature in this area which will be ultimately helpful for knowing the current phenomenon.Success in expansion of financial awareness as a part of financial literacy among individuals ensures the prevalence of financial well being and much required financial inclusion. Apex regulatory bodies in India are trying to achieve utmost level of financial inclusion. It cannot be attained without the basic requirement of Financial awareness and Literacy among common individuals.

Financial Inclusion through Financial Literacy

2022 ◽  
Vol 13 (1) ◽  
pp. 0-0
Keyword(s):  
Financial Literacy ◽  
Uttar Pradesh ◽  
Secondary Data ◽  
Financial Education ◽  
Well Being ◽  
Financial Inclusion ◽  
Financial Decisions ◽  
College Curriculum ◽  
Financial Exclusion ◽  
The Government

Financial literacy is a means to tackle the problem of financial exclusion. It is a combination of awareness, skills, knowledge, attitude and behaviors necessary to make sound financial decisions and achieve financial well being. Objective of this study is to analyze current policy, practices and evidences on financial literacy. The study has been carried out on the basis of review of literature and secondary data collected from a range of sources. It is found that the government of India, RBI and other regulatory bodies are running financial literacy campaigns through diverse mediums. Financial literacy centers (FLCs) are contributing for enhancement of financial literacy. However, they need to be strengthened by enhancing resources. Inclusion of financial education in school and college curriculum has also been recommended. Scope of the study is limited to Ghaziabad district of Uttar Pradesh in India. The study might be valuable for policymakers in enhancing financial inclusion.

scholarly journals Retirement Confidence: Development of an Index

2021 ◽  
Vol 58 ◽  
pp. 004695802110357
Author(s):  
Eraj Ghafoori ◽  
Fernanda Mata ◽  
Kim Borg ◽  
Liam Smith ◽  
Debora Ralston
Keyword(s):  
Financial Literacy ◽  
Older Workers ◽  
Social Connectedness ◽  
Relative Weight ◽  
Well Being ◽  
Self Report ◽  
Future Research ◽  
Linear Aggregation ◽  
Confidence Index ◽  
Financial Awareness

Older workers who are confident about the changes accompanying retirement report higher well-being. We have developed an index to measure retirement confidence – the Retirement Confidence Index (RCI). A six-stage approach was used to develop the index items, including (i) a literature review to catalogue retirement confidence components; (ii) a consultation with a panel of experts to review the proposed indicators and combine components according to their meaning; (iii) normalisation of the selected components to make them comparable; (iv) weighting of the top-level dimensions using experts’ judgement; (v) linear aggregation of the dimension scores according to their corresponding relative weight; and (vi) correlation of the composite score with a self-report measure of retirement confidence. Based on the review of the literature, a list of nine sub-components (financial literacy, financial attitude and behaviour, financial control, financial anxiety, physical health, mental health, social connectedness, goal setting for retirement and future uncertainties) was compiled. Subsequently, these components were grouped into four broad dimensions. Correlations between these dimensions (social, financial awareness and skills, health and well-being, and retirement awareness and planning dimensions) and the corresponding self-reported measures were as high as r = 0.555, r = 0.603, r = 0.591 and r = 0.569, reflecting 30.8%, 36.3%, 34.9% and 32.3% shared variance with the corresponding self-reported indices, respectively. The Retirement Confidence Index provides the foundation for future research to measure retirement confidence, with the aim of identifying deficient RCI dimensions and directing efforts to targeted policies to ensure older workers are confident about retirement.

scholarly journals FINANCIAL LITERACY AND CONSUMER FINANCIAL WELL-BEING IN GHANA: ANY NEXUS WITH MARCO-ECONOMIC STABILITY?

2021 ◽  
Author(s):  
Juabin Matey
Keyword(s):  
Financial Literacy ◽  
Financial Stability ◽  
Well Being ◽  
Good Health ◽  
Standard Of Living ◽  
Policy Outcomes ◽  
Economic Stability ◽  
Financial Decisions ◽  
Economic Issues ◽  
Household Decisions

Despite daily efforts to deal with life's economic issues, most Ghanaians are financially vulnerable. This has made pursuing lifelong ambitions more difficult. Given these realities, it is reasonable to believe that financial literacy and consumer financial stability will be a successful strategy for promoting economic stability. Financial literacy is pivotal for making informed financial decisions at both the household and macroeconomic levels. Although disputable, a high human development index score indicates a country's population is in good health, knowledgeable, and has a better standard of living. As a result, linking household decisions to broader policy outcomes becomes increasingly vital. This research aims to find a link between financial literacy and consumer financial stability as well as their relationship with macroeconomic stability.

Regulatory response to the financial crisis in Europe: recent developments (2010-2013)

2015 ◽  
Vol 7 (1) ◽  
pp. 29-50 ◽  
Author(s):  
Santiago Carbó-Valverde ◽  
Harald A. Benink ◽  
Tom Berglund ◽  
Clas Wihlborg
Keyword(s):  
Financial Crisis ◽  
Financial Stability ◽  
Sovereign Debt ◽  
Financial Regulation ◽  
Ad Hoc ◽  
Debt Crisis ◽  
Banking Union ◽  
Content Type ◽  
European Banking Union ◽  
Wide Range

Purpose – The purpose of this paper by the European Shadow Financial Regulatory Committee (ESFRC) is to provide an account of the financial crisis in Europe during the period 2010-2013 and an analysis of how the relevant authorities reacted to the crisis. Design/methodology/approach – These actions included measures taken by central banks, governments or fiscal authorities, and by regulatory or supervisory bodies. In a previous study covering the regulatory developments during the financial crisis up until 2009, issues such as the implementation of Basel III rules in Europe and the (mostly ad hoc and unilateral) resolution mechanisms set in most European countries to fight the crisis were covered. This study focuses on developments since 2010 with a focus on the concerns and actions that emerged with the sovereign debt crisis in the euro area. In particular, the transition from the European Financial Stability Facility to the European Stability Mechanism is assessed. The focus after 2012 has progressively turned to the challenges of the European banking union. Findings – These issues are jointly covered, along with some updates on the views of the ESFRC on recent advances in other areas, such as solvency regulation. All in all, the authors find that the weaknesses of the global financial system remain to be addressed, and they believe that the banking union is one of the main tools and opportunities for an improved and efficient crisis management in Europe. Originality/value – The paper aims at contributing to the study of financial regulation after the banking crisis. The experience of the euro zone in this context is assessed in this article from a wide range of perspectives.

Revisiting the measurement of financial inclusion of rural smallholder farmers in Nigeria

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Olayinka O. Adegbite ◽  
Charles L. Machethe ◽  
C. Leigh Anderson
Keyword(s):  
Financial Literacy ◽  
Smallholder Farmers ◽  
Household Survey ◽  
Well Being ◽  
Sampling Procedure ◽  
Financial Inclusion ◽  
Policy Recommendations ◽  
Financial Capability ◽  
Content Type ◽  
Consultative Group

PurposeThis study aims to develop and apply a multidimensional measure of financial inclusion (FI) to address measurement issues and determine the level of FI of rural smallholder farmers and the contribution of domain indicators to the level of FI in Nigeria.Design/methodology/approachThe paper adapts the Alkire–Foster method to develop a multidimensional FI index (MFII). A stratified two-stage sampling procedure is used to select 2,300 rural respondents from the 2016 Consultative Group to Assist the Poor (CGAP) Smallholder Household Survey.FindingsResults indicate that 78% of rural smallholder farmers in Nigeria are financially excluded. In addition, owning a formal account is significantly different (p < 0.00) from being financially adequate. The financial capability domain contributes the least (29.66%) to the multidimensional FI (MFI) of rural smallholder farmers relative to financial participation and financial well-being. Financial literacy, consumer protection, overcoming barriers such as high transaction costs and financial planning indicators contribute the least to FI relative to formal access.Practical implicationsResults of the study lead to policy recommendations for increasing the FI of rural smallholder farmers in Nigeria, which may be applicable to other countries.Social implicationsAchieving sustainable FI requires that interventions increase the FI of rural smallholder farmers by strengthening financial capability, participation and well-being and not only focus on formal account owners.Originality/valueThe study provides a new methodological and empirical contribution to the FI literature on rural smallholder farmers.

FINANCIAL LITERACY AND FINANCIAL INCLUSION EFFECTS ON STABILITY AND COMPETITIVENESS INDICATORS IN THE BANKING SECTOR: CROSS COUNTRY EVIDENCE FOR AFRICA AND THE WORLD

2021 ◽  
pp. 2150009
Author(s):  
JOÃO JUNGO ◽  
MARA MADALENO ◽  
ANABELA BOTELHO
Keyword(s):  
Credit Risk ◽  
Interest Rates ◽  
Financial Institutions ◽  
Financial Literacy ◽  
Financial Stability ◽  
Banking Sector ◽  
Financial Education ◽  
Financial Inclusion ◽  
The Stability ◽  
The Impact

Financial inclusion has allowed financial products with very high-interest rates and complex conditions to become increasingly affordable. Financial inclusion programs, which aim to reach all social strata, strongly expose financial institutions to risk and particularly credit risk. That said, additional interventions such as financial education of those included are needed. We aim to examine the impact of financial literacy and financial inclusion of households on bank performance. Specifically, we want to examine the impact of financial literacy on credit risk, competitiveness among banks and financial stability. The FGLS estimation results suggest that financial literacy and financial inclusion reduce credit risk and enhance the stability of banks, and regarding competitiveness, our results were inconclusive as they show different effects for each competitiveness indicator, although they point to improved competitiveness in some cases. This research allows policymakers to understand that individual financial attitudes can be reflected in the general welfare of financial institutions and encourages the intensification of programs aimed at improving household financial literacy.

Financial Inclusion and Quality of Life: Empirical Evidences from Indian States with Special Reference to West Bengal

2021 ◽  
pp. 0258042X2110261
Author(s):  
Avisek Sen ◽  
Arindam Laha
Keyword(s):  
Quality Of Life ◽  
Human Development ◽  
Financial Literacy ◽  
Financial Services ◽  
West Bengal ◽  
Well Being ◽  
Financial Inclusion ◽  
Indian States ◽  
The Relationship

The conceptual connection between financial inclusion and quality of life (QOL) can be realized by a two-way relationships. On the one hand, financial inclusion induces QOL, while an improvement in QOL facilitates in generating demand for financial services, on the other hand. Even though several studies seek to find out the role of finance in the well-being of the population (especially human development), this article concentrates on QOL to eliminate the financial attributes of development (as captured by income dimension in Human Development Index). In this sense, this study addresses the research gap in the existing literature by establishing the relationship between financial inclusion and QOL. Specifically, the article attempts to explain the two-way tie-up between the financial inclusion and the QOL in India in the context of Indian states, in general, and West Bengal, in particular. Canonical correlation (CC; a multivariate data analysis technique) is used to estimate the relation between the financial inclusion and QOL. Empirical results suggest that western and the southern Indian states excel in the attainment of education, health and other amenities-based indicators of QOL. The conditions of the eastern part of the country in case of financial inclusion and the QOL are not at all satisfactory. In case of West Bengal, Kolkata being the state capital is performing well in both the factors. CC results suggest a significant association between the financial inclusion and QOL across Indian states. The deposit account of financial inclusion indicator and the infant survival rate of QOL indicator are playing a pivotal role in the relationship (both the Indian states and districts of West Bengal as well). This article establishes the effectiveness of the demand following approach of financial inclusion than that of supply leading approach. As the demand-side aspect of financial inclusion is becoming more important to the policymakers, the next policy priority of financial inclusion measures could be the generation of awareness on the financial services through financial literacy. JEL Codes: G2, O15, C39

scholarly journals FINANCIAL LITERACY AND CONSUMER FINANCIAL WELL-BEING IN GHANA: ANY NEXUS WITH MARCO-ECONOMIC STABILITY?

2021 ◽  
Author(s):  
Juabin Matey
Keyword(s):  
Financial Literacy ◽  
Financial Stability ◽  
Well Being ◽  
Good Health ◽  
Standard Of Living ◽  
Policy Outcomes ◽  
Economic Stability ◽  
Financial Decisions ◽  
Economic Issues ◽  
Household Decisions

Despite daily efforts to deal with life's economic issues, most Ghanaians are financially vulnerable. This has made pursuing lifelong ambitions more difficult. Given these realities, it is reasonable to believe that financial literacy and consumer financial stability will be a successful strategy for promoting economic stability. Financial literacy is pivotal for making informed financial decisions at both the household and macroeconomic levels. Although disputable, a high human development index score indicates a country's population is in good health, knowledgeable, and has a better standard of living. As a result, linking household decisions to broader policy outcomes becomes increasingly vital. This research aims to find a link between financial literacy and consumer financial stability as well as their relationship with macroeconomic stability.

scholarly journals FINANCIAL INCLUSION AS A DRIVER PROVIDING FINANCIAL SECURITY IN UKRAINE

2019 ◽  
pp. 43-52
Author(s):  
O. Zakharkin ◽  
V. Boronos ◽  
L. Zakharkina ◽  
O. Tverezovska
Keyword(s):  
Financial Literacy ◽  
Financial Services ◽  
Financial Stability ◽  
Shadow Economy ◽  
Financial Inclusion ◽  
Financial Security ◽  
Credit System ◽  
The Public ◽  
Theoretical Approaches ◽  
Business Confidence

Theoretical approaches to defining the concept of financial inclusion are considered. It is determined that financial inclusion and the public and business confidence in the financial and credit system are driving factors for directing savings into the investment sector, reducing the level of shadow economy, increasing the financial stability of economic entities, and, as a consequence, increasing the level of government revenues and financial security ensuring. Theoretical and methodological foundations of financial inclusion spreading as a driver of financial security of Ukraine are investigated. Key words: financial inclusion, financial security, financial literacy, financial services.

scholarly journals Effect of Financial Inclusion on Financial Stability: Countrys by Income Level Clasiffication, 2004-2014

2020 ◽  
Vol 1 (1) ◽  
pp. 11-22
Author(s):  
Wirdatul Aini ◽  
A. Tony Prasetiantono
Keyword(s):  
Financial Crisis ◽  
Commercial Bank ◽  
Low Income ◽  
Financial Stability ◽  
High Income ◽  
Financial Inclusion ◽  
Low Income Countries ◽  
Service Development ◽  
Middle Income ◽  
Middle Income Countries

Financial inclusion has become a main key for financial service development yet this development should also consider financial stability. The Asian financial crisis 1997 and the Global financial crisis 2008 gave us lesson of how important to maintain financial stability. Thus, the development of the financial services sector through financial inclusion is expected to impact the financial stability of the countries income levels. This study aims to determine the effect of financial inclusion relation to the financial stability in many countries based on their level of income during 2004-2014. This study used unbalanced panel data regression with fixed effect model. The results showed that financial inclusion proxied by commercial bank outstanding deposit has positive yet unsignignificant effect on financial stability for high income and upper-middle income countries, and has negative significant effect for lower-middle income and low income countries. Meanwhile, financial inclusion proxied by commercial bank outstanding loan has negative significant effect on financial stability in high income and upper middle income countries. This result is the opposite of lower-middle income which showed positive yet unsignificant effect, and positive significant impact for low  income countries

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