Can Regulation Promote Financial Inclusion?

Despite the commitments of the development community toward broader access to finance, financial inclusion rates worldwide are rather unsatisfactory. To date, around two billion adults do not have access to basic financial services such as savings...

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Main Authors:	Chen, Rong, Divanbeigi, Raian
Format:	Working Paper
Language:	English
Published:	World Bank, Washington, DC 2019
Subjects:	FINANCIAL INCLUSION REGULATION SMALL AND MEDIUM-SIZED ENTERPRISES ACCESS TO FINANCE FINANCIAL SERVICES
Online Access:	http://documents.worldbank.org/curated/en/689111547822970149/Can-Regulation-Promote-Financial-Inclusion http://hdl.handle.net/10986/31179

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recordtype	oai_dc
spelling	okr-10986-311792022-09-05T00:21:54Z Can Regulation Promote Financial Inclusion? Chen, Rong Divanbeigi, Raian FINANCIAL INCLUSION REGULATION SMALL AND MEDIUM-SIZED ENTERPRISES ACCESS TO FINANCE FINANCIAL SERVICES Despite the commitments of the development community toward broader access to finance, financial inclusion rates worldwide are rather unsatisfactory. To date, around two billion adults do not have access to basic financial services such as savings and checking accounts. Attempting to bridge such gap between policy objectives and outcomes, several economists have probed the determinants of financial inclusion. This paper contributes to the debate by investigating the role played by financial regulation. First, the paper proposes a broad index of regulatory quality for financial inclusion, emphasizing the role of nontraditional delivery models, for example, branchless banking, and actors, for example, nonbank lending institutions. Second, the paper tests the relationship between regulatory quality and financial inclusion outcomes. The analysis finds that in countries where regulatory quality is within the top quartile, individuals are 12.4 percent more likely to have an account at a financial institution with respect to bottom quartile countries. 2019-01-31T21:41:29Z 2019-01-31T21:41:29Z 2019-01 Working Paper http://documents.worldbank.org/curated/en/689111547822970149/Can-Regulation-Promote-Financial-Inclusion http://hdl.handle.net/10986/31179 English Policy Research Working Paper;No. 8711 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo World Bank World Bank, Washington, DC Publications & Research Publications & Research :: Policy Research Working Paper
repository_type	Digital Repository
institution_category	Foreign Institution
institution	Digital Repositories
building	World Bank Open Knowledge Repository
collection	World Bank
language	English
topic	FINANCIAL INCLUSION REGULATION SMALL AND MEDIUM-SIZED ENTERPRISES ACCESS TO FINANCE FINANCIAL SERVICES
spellingShingle	FINANCIAL INCLUSION REGULATION SMALL AND MEDIUM-SIZED ENTERPRISES ACCESS TO FINANCE FINANCIAL SERVICES Chen, Rong Divanbeigi, Raian Can Regulation Promote Financial Inclusion?
relation	Policy Research Working Paper;No. 8711
description	Despite the commitments of the development community toward broader access to finance, financial inclusion rates worldwide are rather unsatisfactory. To date, around two billion adults do not have access to basic financial services such as savings and checking accounts. Attempting to bridge such gap between policy objectives and outcomes, several economists have probed the determinants of financial inclusion. This paper contributes to the debate by investigating the role played by financial regulation. First, the paper proposes a broad index of regulatory quality for financial inclusion, emphasizing the role of nontraditional delivery models, for example, branchless banking, and actors, for example, nonbank lending institutions. Second, the paper tests the relationship between regulatory quality and financial inclusion outcomes. The analysis finds that in countries where regulatory quality is within the top quartile, individuals are 12.4 percent more likely to have an account at a financial institution with respect to bottom quartile countries.
format	Working Paper
author	Chen, Rong Divanbeigi, Raian
author_facet	Chen, Rong Divanbeigi, Raian
author_sort	Chen, Rong
title	Can Regulation Promote Financial Inclusion?
title_short	Can Regulation Promote Financial Inclusion?
title_full	Can Regulation Promote Financial Inclusion?
title_fullStr	Can Regulation Promote Financial Inclusion?
title_full_unstemmed	Can Regulation Promote Financial Inclusion?
title_sort	can regulation promote financial inclusion?
publisher	World Bank, Washington, DC
publishDate	2019
url	http://documents.worldbank.org/curated/en/689111547822970149/Can-Regulation-Promote-Financial-Inclusion http://hdl.handle.net/10986/31179
_version_	1764473724469248000

Can Regulation Promote Financial Inclusion?

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