IDEAS home Printed from https://ideas.repec.org/a/rom/bemann/v7y2017i4p18-33.html
   My bibliography  Save this article

Financial Inclusion- A Comparative Study On South Asia

Author

Listed:
  • S M Rakibul ANWAR

    (Bangladesh Army International University of Science & Technology, Comilla, Bangladesh)

  • Tanzina Tabassum TANZO

    (University of Chittagong, Chittagong, Bangladesh)

  • Riduanul MOSTAFA

    (Bangladesh Army International University of Science & Technology, Comilla, Bangladesh)

Abstract

This paper aims to construct an index of financial inclusion (IFI) in South Asian countries. Despite the growing recognition of financial inclusion across countries, the literature on measuring financial inclusion position among the South Asian countries is still scanty. Initially, the index of financial inclusion is calculated for 6 countries of the South Asian Countries for 2004 to 2015 using the data provided by financial access survey of International Monetary Fund (IMF) and Global findex database and finally Sarma model (2008) to compute Index of Financial Inclusion (IFI). Sarma model (2008) includes three dimensions of financial inclusion, which are: banking penetration, availability of banking services and usage of banking system. This paper reflects the comparative position of financial inclusion among the countries in the South Asia. From the index calculated, it is noticed that the position of India and Bhutan are good in comparison on other countries in South Asia but the Pakistan and Afghanistan are lag behind in financial inclusion due to lacks of usages of formal financial services by their country people. So, there are lots of scopes for improvement of financial inclusion position of these countries massively.

Suggested Citation

  • S M Rakibul ANWAR & Tanzina Tabassum TANZO & Riduanul MOSTAFA, 2017. "Financial Inclusion- A Comparative Study On South Asia," Business Excellence and Management, Faculty of Management, Academy of Economic Studies, Bucharest, Romania, vol. 7(4), pages 18-33, December.
    • Handle: RePEc:rom:bemann:v:7:y:2017:i:4:p:18-33
    as

    Download full text from publisher

    File URL: https://beman.ase.ro/no74/2.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Demirgüç-Kunt, A. & Beck, T.H.L. & Honohan, P., 2008. "Finance for all? : Policies and pitfalls in expanding access," Other publications TiSEM aec73d3a-d6eb-457f-9182-3, Tilburg University, School of Economics and Management.
    2. Beck, Thorsten & Demirguc-Kunt, Asli & Martinez Peria, Maria Soledad, 2007. "Reaching out: Access to and use of banking services across countries," Journal of Financial Economics, Elsevier, vol. 85(1), pages 234-266, July.
    3. Mandira Sarma, 2008. "Index of Financial Inclusion," Working Papers id:1575, eSocialSciences.
    4. Priya Basu, 2006. "Improving Access to Finance for India's Rural Poor," World Bank Publications - Books, The World Bank Group, number 6927, December.
    5. Hasan, Md Rashel & Islam, Md Ezazul, 2016. "Financial Inclusion Index at District Levels in Bangladesh: A Distance-based Approach," MPRA Paper 71344, University Library of Munich, Germany.
    6. Mandira Sarma, "undated". "Index of Financial Inclusion," Indian Council for Research on International Economic Relations, New Delhi Working Papers 215, Indian Council for Research on International Economic Relations, New Delhi, India.
    7. World Bank, 2009. "Banking the Poor : Measuring Banking Access in 54 Economies," World Bank Publications - Books, The World Bank Group, number 13804, December.
    8. Mandira Sarma, 2008. "Index of Financial Inclusion," Finance Working Papers 22259, East Asian Bureau of Economic Research.
    9. Demirguc-Kunt,Asli & Klapper,Leora & Singer,Dorothe & Van Oudheusden,Peter, 2015. "The Global Findex Database 2014 : measuring financial inclusion around the world," Policy Research Working Paper Series 7255, The World Bank.
    10. Honohan, Patrick, 2008. "Cross-country variation in household access to financial services," Journal of Banking & Finance, Elsevier, vol. 32(11), pages 2493-2500, November.
    11. World Bank, 2008. "Finance for All? Policies and Pitfalls in Expanding Access," World Bank Publications - Books, The World Bank Group, number 6905, December.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Susanta Kumar SETHY & Phanindra GOYARI, 2022. "Measuring financial inclusion and its present status in South Asian countries. Evidence from a multidimensional Financial Inclusion Index," Theoretical and Applied Economics, Asociatia Generala a Economistilor din Romania - AGER, vol. 0(3(632), A), pages 131-150, Autumn.
    2. Tram, Thi Xuan Huong & Lai, Tien Dinh & Nguyen, Thi Truc Huong, 2023. "Constructing a composite financial inclusion index for developing economies," The Quarterly Review of Economics and Finance, Elsevier, vol. 87(C), pages 257-265.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Manohar Serrao & Aloysius Sequeira & K. V. M. Varambally, 2021. "Impact of Financial Inclusion on the Socio-Economic Status of Rural and Urban Households of Vulnerable Sections in Karnataka," Papers 2105.11716, arXiv.org.
    2. Josephine Ofosu‐Mensah Ababio & Edward Attah‐Botchwey & Eric Osei‐Assibey & Charles Barnor, 2021. "Financial inclusion and human development in frontier countries," International Journal of Finance & Economics, John Wiley & Sons, Ltd., vol. 26(1), pages 42-59, January.
    3. Chakravarty, Satya R. & Pal, Rupayan, 2013. "Financial inclusion in India: An axiomatic approach," Journal of Policy Modeling, Elsevier, vol. 35(5), pages 813-837.
    4. Kazeem B. Ajide & Olorunfemi Y. Alimi & Simplice A. Asongu & Ibrahim D. Raheem, 2022. "The role of institutional infrastructures in financial inclusion‐growth relations: Evidence from SSA," International Journal of Finance & Economics, John Wiley & Sons, Ltd., vol. 27(1), pages 175-191, January.
    5. Giorgio Nuzzo & Stefano Piermattei, 2019. "Measuring financial inclusion in the main euro area countries: the role of electronic cards," Questioni di Economia e Finanza (Occasional Papers) 504, Bank of Italy, Economic Research and International Relations Area.
    6. Josephat Lotto, 2022. "Understanding financial inclusion in East Africa: How does Tanzania compare?," International Journal of Finance & Economics, John Wiley & Sons, Ltd., vol. 27(1), pages 1075-1084, January.
    7. Bao Zhu & Shiting Zhai & Jing He, 2018. "Is the Development of China’s Financial Inclusion Sustainable? Evidence from a Perspective of Balance," Sustainability, MDPI, vol. 10(4), pages 1-16, April.
    8. Giorgio Nuzzo & Stefano Piermattei, 2020. "Discussing Measures of Financial Inclusion for the Main Euro Area Countries," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 148(3), pages 765-786, April.
    9. Gerti Shijaku, 2017. "Bank prudential and bank stability– how far do they go," Journal of Banking and Financial Economics, University of Warsaw, Faculty of Management, vol. 2(8), pages 127-150, October.
    10. Désiré Avom & Chrysost Bangaké & Hermann Ndoya, 2021. "Measuring financial inclusion in African countries," Economics Bulletin, AccessEcon, vol. 41(3), pages 848-866.
    11. André Mialou & Goran Amidzic & Alexander Massara, 2017. "Assessing Countries’ Financial Inclusion Standing– A New Composite Index," Journal of Banking and Financial Economics, University of Warsaw, Faculty of Management, vol. 2(8), pages 105-126, October.
    12. Mandira Sarma, 2012. "Index of Financial Inclusion – A measure of financial sector inclusiveness," Competence Centre on Money, Trade, Finance and Development 1207, Hochschule fuer Technik und Wirtschaft, Berlin.
    13. Dilip Ambarkhane & Ardhendu Shekhar Singh & Bhama Venkataramani, 2016. "Developing a Comprehensive Financial Inclusion Index," Management and Labour Studies, XLRI Jamshedpur, School of Business Management & Human Resources, vol. 41(3), pages 216-235, August.
    14. Hermann Hegueu Ndoya & Charly Ondobo Tsala, 2021. "What drive gender gap in financial inclusion? Evidence from Cameroon," African Development Review, African Development Bank, vol. 33(4), pages 674-687, December.
    15. Vanesa Pesqué‐Cela & Lihui Tian & Deming Luo & Damian Tobin & Gerhard Kling, 2021. "Defining and measuring financial inclusion: A systematic review and confirmatory factor analysis," Journal of International Development, John Wiley & Sons, Ltd., vol. 33(2), pages 316-341, March.
    16. Harry Aginta & Debby A. Soraya & Wahyu B. Santoso, 2018. "Financial Development and Income Inequality in Indonesia: A Sub-national Level Analysis," Economics and Finance in Indonesia, Faculty of Economics and Business, University of Indonesia, vol. 64, pages 111-130, Desember.
    17. Tran Huong Thi Thanh & Le Ha Thi Thu, 2021. "The Impact of Financial Inclusion on Poverty Reduction," Asian Journal of Law and Economics, De Gruyter, vol. 12(1), pages 95-119, April.
    18. Fareeha Adil & Abdul Jalil, 2020. "Determining the Financial Inclusion Output of Banking Sector of Pakistan—Supply-Side Analysis," Economies, MDPI, vol. 8(2), pages 1-20, May.
    19. Noelia Cámara & David Tuesta, 2018. "Measuring financial inclusion: a multidimensional index," IFC Bulletins chapters, in: Bank for International Settlements (ed.), The role of data in supporting financial inclusion policy, volume 47, Bank for International Settlements.
    20. Meldina Kokorovic Jukan & Amra Softic, 2016. "Comparative Analysis Of Financial Inclusion In Developing Regions Around The World," Economic Review: Journal of Economics and Business, University of Tuzla, Faculty of Economics, vol. 14(2), pages 56-65, November.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:rom:bemann:v:7:y:2017:i:4:p:18-33. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Zamfir Andreea (email available below). General contact details of provider: https://edirc.repec.org/data/mnasero.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.