Examining the linkages among financial inclusion, economic growth, poverty, and inequality reduction in Africa

PurposeDeposit insurance activities aimed at achieving financial stability and depositor protection often align with financial inclusion programmes of other financial safety-net participants. However, there is limited empirical evidence in the literature on the role of deposit insurance (DIS) in financial inclusion. This study bridges this gap by analysing data from 143 countries to assess the impact of DIS on financial inclusion along the dimensions of access and usage.Design/methodology/approachThis study uses the random effect and the generalized methods of moments (GMM) regression models to estimate the effects of deposit insurance on financial inclusion.FindingsOur results show that, in addition to positive impacts from other policy drivers such as income per capita, economic growth and banking and financial sector development, the practice of an explicit deposit insurance system (EDIS) significantly promotes financial inclusion. However, merely having any form of DIS, as proxied by IADI membership, shows limited potential. Based on the data-informed reliability of our findings, we recommend that countries aiming to deepen financial inclusion should consider adopting or intensifying the practice of EDIS alongside existing programmes.Originality/valueThere is limited or scanty empirical evidence in the literature, if there exists any, that indicates that financial inclusion progress actually benefits from deposit insurance. This study therefore contributes to the literature by providing an empircal evidence on the positive impact of deposit insurance on financial inclusion.

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Exploring the Relationship Between Banking Development Facets and Economic Volatility: Evidence from Developing Nations

Sebai,

Talbi

2024

EJBMR

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This study investigates the impact of banking development on economic growth volatility in developing countries over the period 2004–2019, using a panel quantile approach. By examining different facets of banking development, our findings indicate a negative effect of banking sector depth, access, and quality on economic growth volatility. Banking development significantly reduces economic growth instability across different quantiles of economic growth volatility. Nevertheless, banking efficiency increases economic volatility. This study provides valuable insights to financial regulatory authorities in making decisions related to banking development-economic instability nexus.

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Examining the linkages among financial inclusion, economic growth, poverty, and inequality reduction in Africa

Cited by 4 publications

References 85 publications

Unleashing Student Triumph: Unraveling the Dynamic Link Between State Funding, Academic Excellence, and Financial Prosperity in the Digital Era

Unleashing Student Triumph: Unraveling the Dynamic Link Between State Funding, Academic Excellence, and Financial Prosperity in the Digital Era

Deposit insurance and financial inclusion

Exploring the Relationship Between Banking Development Facets and Economic Volatility: Evidence from Developing Nations

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