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Financial Inclusion in Asia: An Overview

Author

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  • Ayyagari , Meghana

    (George Washington University)

  • Beck, Thorsten

    (Cass Business School)

Abstract

This paper provides an analysis of financial development and inclusion in developing Asia using data from a wide array of sources. We show that in terms of aggregate measures of financial development, the region as a whole has superior banking sector depth compared to other developing regions; however, this masks a great deal of variation across Asian economies. Furthermore, in terms of financial inclusion, fewer than 27% of adults in developing Asia have an account in a formal financial institution, and only 33% of enterprises report having a line of credit or a loan from a financial institution. Cost, geographic access, and lack of identification are the most commonly reported barriers to financial inclusion that can be addressed by policy makers.

Suggested Citation

  • Ayyagari , Meghana & Beck, Thorsten, 2015. "Financial Inclusion in Asia: An Overview," ADB Economics Working Paper Series 449, Asian Development Bank.
    • Handle: RePEc:ris:adbewp:0449
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    References listed on IDEAS

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    Cited by:

    1. Sabyasachi Tripathi & Meenakshi Rajeev, 2023. "Gender-Inclusive Development through Fintech: Studying Gender-Based Digital Financial Inclusion in a Cross-Country Setting," Sustainability, MDPI, vol. 15(13), pages 1-34, June.
    2. Md. Nur Alam Siddik & Tanveer Ahsan & Sajal Kabiraj, 2019. "Does Financial Permeation Promote Economic Growth? Some Econometric Evidence From Asian Countries," SAGE Open, , vol. 9(3), pages 21582440198, July.
    3. Shahid Manzoor Shah & Amjad Ali, 2022. "A Survey on Financial Inclusion: Theoretical and Empirical Literature Review," Journal of Policy Research (JPR), Research Foundation for Humanity (RFH), vol. 8(4), pages 310-330, December.
    4. Briones, M.R., 2018. "IFAD RESEARCH SERIES 20 - Transformation and diversification of the rural economy in Asia," IFAD Research Series 280069, International Fund for Agricultural Development (IFAD).
    5. Evans, Olaniyi, 2016. "Determinants of Financial Inclusion in Africa: A Dynamic Panel Data Approach," MPRA Paper 81326, University Library of Munich, Germany.
    6. Ozili, Peterson K, 2020. "Financial inclusion research around the world: a review," MPRA Paper 101809, University Library of Munich, Germany.

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    More about this item

    Keywords

    financial development; financial inclusion; financial system;
    All these keywords.

    JEL classification:

    • D14 - Microeconomics - - Household Behavior - - - Household Saving; Personal Finance
    • G20 - Financial Economics - - Financial Institutions and Services - - - General
    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • G30 - Financial Economics - - Corporate Finance and Governance - - - General

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