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Financial inclusion and stability in the Asian region using bank-level data

Financial inclusion drives human development by supporting inclusive growth, economic development, and financial deepening. It has become a key enabler in reducing poverty and boosting prosperity. Financial inclusion can provide billions of currently unbanked adults with access to and active use of...

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Autores principales: Vo, Duc Hong, Nguyen, Nhan Thien, Thi-Hong Van, Loan
Formato: Online Artículo Texto
Lenguaje:English
Publicado: Borsa İstanbul Anonim şirketi. Production and hosting by Elsevier B.V. 2021
Materias:
Acceso en línea:https://www.ncbi.nlm.nih.gov/pmc/articles/PMC7334937/
http://dx.doi.org/10.1016/j.bir.2020.06.003
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author Vo, Duc Hong
Nguyen, Nhan Thien
Thi-Hong Van, Loan
author_facet Vo, Duc Hong
Nguyen, Nhan Thien
Thi-Hong Van, Loan
author_sort Vo, Duc Hong
collection PubMed
description Financial inclusion drives human development by supporting inclusive growth, economic development, and financial deepening. It has become a key enabler in reducing poverty and boosting prosperity. Financial inclusion can provide billions of currently unbanked adults with access to and active use of affordable financial products and services for their needs from transactions, payments, savings, credit, and insurance. The Asian region is generally considered to have a low level of financial inclusion. In addition, financial inclusion has mostly been ignored in current academic studies on the region. The governments in the region have expressed their concerns about macroeconomic instability associated with extensive financial inclusion. As such, this paper examines the linkage between financial inclusion and financial market stability using a dataset of 3071 banks in the Asian region over the period from 2008 to 2017. This paper uses a generalized method of moments (GMM) approach. Findings in this paper indicate that the higher level of financial inclusion from providing access to banking facilities contributes positively and significantly to stability in the banking sector, leading to greater bank resilience. Financial inclusion can help banks increase revenue, reduce cost, and expand their market share. Policy implications are outlined based on the findings in this paper.
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spelling pubmed-73349372020-07-06 Financial inclusion and stability in the Asian region using bank-level data Vo, Duc Hong Nguyen, Nhan Thien Thi-Hong Van, Loan Borsa Istanbul Review Full Length Article Financial inclusion drives human development by supporting inclusive growth, economic development, and financial deepening. It has become a key enabler in reducing poverty and boosting prosperity. Financial inclusion can provide billions of currently unbanked adults with access to and active use of affordable financial products and services for their needs from transactions, payments, savings, credit, and insurance. The Asian region is generally considered to have a low level of financial inclusion. In addition, financial inclusion has mostly been ignored in current academic studies on the region. The governments in the region have expressed their concerns about macroeconomic instability associated with extensive financial inclusion. As such, this paper examines the linkage between financial inclusion and financial market stability using a dataset of 3071 banks in the Asian region over the period from 2008 to 2017. This paper uses a generalized method of moments (GMM) approach. Findings in this paper indicate that the higher level of financial inclusion from providing access to banking facilities contributes positively and significantly to stability in the banking sector, leading to greater bank resilience. Financial inclusion can help banks increase revenue, reduce cost, and expand their market share. Policy implications are outlined based on the findings in this paper. Borsa İstanbul Anonim şirketi. Production and hosting by Elsevier B.V. 2021-03 2020-07-04 /pmc/articles/PMC7334937/ http://dx.doi.org/10.1016/j.bir.2020.06.003 Text en © 2020 The Authors Since January 2020 Elsevier has created a COVID-19 resource centre with free information in English and Mandarin on the novel coronavirus COVID-19. The COVID-19 resource centre is hosted on Elsevier Connect, the company's public news and information website. Elsevier hereby grants permission to make all its COVID-19-related research that is available on the COVID-19 resource centre - including this research content - immediately available in PubMed Central and other publicly funded repositories, such as the WHO COVID database with rights for unrestricted research re-use and analyses in any form or by any means with acknowledgement of the original source. These permissions are granted for free by Elsevier for as long as the COVID-19 resource centre remains active.
spellingShingle Full Length Article
Vo, Duc Hong
Nguyen, Nhan Thien
Thi-Hong Van, Loan
Financial inclusion and stability in the Asian region using bank-level data
title Financial inclusion and stability in the Asian region using bank-level data
title_full Financial inclusion and stability in the Asian region using bank-level data
title_fullStr Financial inclusion and stability in the Asian region using bank-level data
title_full_unstemmed Financial inclusion and stability in the Asian region using bank-level data
title_short Financial inclusion and stability in the Asian region using bank-level data
title_sort financial inclusion and stability in the asian region using bank-level data
topic Full Length Article
url https://www.ncbi.nlm.nih.gov/pmc/articles/PMC7334937/
http://dx.doi.org/10.1016/j.bir.2020.06.003
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