Impact of Financial inclusion and financial stability: Empirical and theoretical review

Kamal, Asghar; Hussain, Talat; Khan, Muhammad Aamir Shafique

doi:10.47264/idea.lassij/5.1.33

Cited by 14 publications

(3 citation statements)

References 54 publications

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“…The availability of effective financial institutions is essential for mobilizing savings, allocating resources for most productive usage and enhancing the diversification of financial risk. On the contrary, a weak financial system hampers the development process in an economy and poses challenges in promoting inclusive growth (Kamal et al, 2021;Huang et al, 2021;Kebede et al, 2021).…”

Section: Introductionmentioning

confidence: 99%

Determinants of financial inclusion across gender in Saudi Arabia: evidence from the World Bank's Global Financial Inclusion survey

Shabir

Ali

2022

IJSE

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PurposeThis paper investigates the magnitude of financial inclusion in terms of ownership and usage of financial products across gender in Saudi Arabia based on the World Bank's Global Financial Inclusion (GFI) survey data.Design/methodology/approachThis study derives the data from the GFI survey, covering 1,009 respondents from Saudi Arabia. The data on ownership and usage of financial products along with demographic characteristics of the surveyed respondents have been extracted for the analysis. The data have been analyzed with the help of statistical techniques, such as the chi-square test, and marginal effects for identifying the factors affecting financial inclusion across gender.FindingsThere is a significant association between financial inclusion and gender in terms of ownership and usage. About 82% of males have reported having a bank account with financial institutions, whereas only 60% females have reported ownership of a bank account in Saudi Arabia. The ownership and usage of financial products are comparatively more among males than females. The analysis of the marginal effect of gender shows a significant and positive impact on financial inclusion, implying that males are 10 and 13% more likely to own and use financial products, respectively, as compared to females. Further, marginal effect estimates for ownership and usage for males and females indicate that a set of independent variables related to age, level of education, occupation and income level of the respondents have a significant impact on financial inclusion.Practical implicationsFinancial inclusion across gender is the first step of creating an inclusive society and empowering both males and females equally. Findings indicated an inclination of financial inclusion towards males. The research findings provide key policy insights for achieving the Vision 2030 of Saudi Arabia by strengthening gender inclusion in its growth story and ensuring the participation of females at workplaces.Originality/valueMost of the studies have included bank account ownership in a financial institution as an indicator of financial inclusion. The authors have included ownership and usage of a variety of financial products for assessing the determinants of financial inclusion across gender, which provides empirical evidence on the magnitude of financial inclusion.

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Section: Introductionmentioning

confidence: 99%

Determinants of financial inclusion across gender in Saudi Arabia: evidence from the World Bank's Global Financial Inclusion survey

Shabir

Ali

2022

IJSE

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“…Several studies were carried out analyzing and comparing the determinants of financial inclusion among regions (Sarma & Pais, 2011;Gupte et al, 2012;Akudugu, 2013;Hassan, 2015;Park & Mercado, 2015;Lotto, 2016;Hillary, 2016;Uddin et al, 2017;Abel et al, 2018;Hussaini & Chibuzo, 2018;Neaime and Gaysset, 2018;Anyanwu et al, 2018;Mdasha et al, 2018;Ojwang & Otinga, 2019;Kapaya, 2019;Kinyua & Omagwa, 2020;Al-Chahadah et al, 2020;Koomson et al, 2020;Singh, 2020;Anastesia et al, 2020;Kamal, 2021;Eze & Alugbuo, 2021;Johnpaul & Patience, 2021;Maity & Sahu, 2021;Naser & Alabassi, 2022;Al-Eitan et al, 2022;Winful et al, 2022). However, most of the previous studies focused on the determinants of financial inclusion in the developing countries of Asia, South America, Europe, North Africa, Sub-Saharan Africa or in countries such as Bangladesh, India, China and Indonesia.…”

Section: Introductionmentioning

confidence: 99%

Financial Inclusion and Financial Performance of Deposit Money Banks in Nigeria

Appah¹,

S.F.²

2023

African Journal of Accounting and Financial Research

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This study investigated the relationship between financial inclusion and financial performance of deposit money banks in Nigeria from 2011 to 2021. The specific objectives were to investigate the relationship between customers loan and return on assets of deposit money banks in Nigeria; determine the relationship between customers deposit and return on assets of deposit money banks in Nigeria; evaluate the relationship between bank branches spread and return on assets of deposit money banks in Nigeria; ascertain the relationship between online banking and return on assets of deposit money banks in Nigeria; and investigate the relationship between agent banking and return on assets of deposit money banks in Nigeria. The study employed ex post facto and correlation research design with secondary data obtained from the Central Bank of Nigeria and financial institutions of deposit money banks. The population of the study consisted of all listed deposit money banks and a sample size of ten (10) was employed for data analyzing using univariate, bivariate and multivariate analysis. The results indicated a positive and significant relationship between loans to customers, deposits by customers, bank branches, mobile banking and agency banking on return on assets of deposit money banks. The study concluded that financial inclusion positively influences the level of financial performance of deposit money banks. On the basis of the conclusion, the paper recommended amongst others that financial inclusion innovation methods should be stressed in the financial sector through Central Bank of Nigeria (CBN) regulatory and advisories since it leads to improved financial performance and efficiency. In addition, the study also recommends that deposit money banks in Nigeria should invest more on agency, internet banking and ATM services to include the excluded people in financial services and products throughout the country since they provide significant influence on the financial performance of deposit money banks.

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“…So one person's access to formal financial services does not limit its availability to others. For persons or small businesses, banks can offer them a free debit card and use ATMs without a transaction fee; for suppliers, they will bear the cost as a sunk cost of doing business; and governments can provide financial institutions with subsidies to help them deal with any cost issues that occur because of providing citizens with free formal financial services (Kamal, et al, 2021).…”

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confidence: 99%

تأثير الشمول المالي علي الأداء المالي للبنوك التجارية: دراسة اختبارية علي الدول النامية

EmadEldeen

2023

المجلة العلمية للدراسات التجارية والبيئية

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This research aims to measure the impact of financial inclusion on the financial performance of commercial banks in developing countries. To achieve this objective, an empirical study was conducted on commercial banks in 39 developing countries in the period from 2004 to 2021. Pooled regression, random and fixed effect models were used by conducting annual cross-sectional data from the Federal Reserve Economic Database and the World Banks Database. The results showed that there is a statistically significant positive relationship between access to financial inclusion through bank deposits and bank performance, which indicates that the high rate of deposits enhances bank performance. Moreover, there is a statistically significant positive relationship between the usage of financial inclusion through outstanding loans and bank performance, which indicates that the high rate of loans allow the banks to fund more operation, consequently, enhancing the bank performance. In addition, there is a statistically significant positive relationshipThe effect of financial inclusion on the financial performance of the … Dr/ Rehab EmadEldeenbetween the availability of financial inclusion through ATMs and branches and bank performance, which indicates that using more ATMs and bank branches increases the chance of financial inclusion to reach the unbanked, which helps enhance bank performance. Therefore, the research recommends raising the rate of loans and deposits and launching more ATMs and bank branches to increase financial inclusion and improve the bank's performance. These insights are consistent with theorists and scholars worked on each dimension separately.

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Impact of Financial inclusion and financial stability: Empirical and theoretical review

Cited by 14 publications

References 54 publications

Determinants of financial inclusion across gender in Saudi Arabia: evidence from the World Bank's Global Financial Inclusion survey

Determinants of financial inclusion across gender in Saudi Arabia: evidence from the World Bank's Global Financial Inclusion survey

Financial Inclusion and Financial Performance of Deposit Money Banks in Nigeria

تأثير الشمول المالي علي الأداء المالي للبنوك التجارية: دراسة اختبارية علي الدول النامية

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