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Overview of Financial Inclusion, Regulation, and Education

Author

Listed:
  • Yoshino, Naoyuki

    (Asian Development Bank Institute)

  • Morgan, Peter J.

    (Asian Development Bank Institute)

Abstract

Financial inclusion is receiving increasing attention as having the potential to contribute to economic and financial development while at the same time fostering more inclusive growth and greater income equality. However, although substantial progress has been made, there is still much to achieve. East Asia and the Pacific and South Asia combined account for 55% of the world’s unbanked adults, mainly in India and the People’s Republic of China (PRC). This paper surveys the experience of a number of advanced and Asian emerging economies to assess factors affecting the ability of low-income households and small firms to access financial services, including financial literacy, financial education programs and financial regulatory frameworks, and identify policies that can improve their financial access while maintaining financial stability. It aims to identify successful experiences and important lessons that can be adopted by other emerging economies. This analysis is based on studies of the experiences of Germany, the United Kingdom, Bangladesh, India, Indonesia, the Philippines, Sri Lanka and Thailand. The study aims to take a practical and holistic approach to issues related to financial inclusion. For example, innovative methods of promoting financial access, such as mobile phone banking and micro-finance, require corresponding innovations in regulatory frameworks, perimeters and capacity. Moreover, programs in the areas of financial education and consumer protection are needed to enable households and small firms to take full advantage of improvements in financial access.

Suggested Citation

  • Yoshino, Naoyuki & Morgan, Peter J., 2016. "Overview of Financial Inclusion, Regulation, and Education," ADBI Working Papers 591, Asian Development Bank Institute.
  • Handle: RePEc:ris:adbiwp:0591
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    References listed on IDEAS

    as
    1. Alfred Hannig & Stefan Jansen, 2010. "Financial Inclusion and Financial Stability : Current Policy Issues," Finance Working Papers 23124, East Asian Bureau of Economic Research.
    2. Robin Burgess & Rohini Pande, 2005. "Do Rural Banks Matter? Evidence from the Indian Social Banking Experiment," American Economic Review, American Economic Association, vol. 95(3), pages 780-795, June.
    3. Yoshino, Naoyuki & Morgan, Peter & Wignaraja, Ganeshan, 2015. "Financial Education in Asia: Assessment and Recommendations," ADBI Working Papers 534, Asian Development Bank Institute.
    4. Peter J. Morgan & Victor Pontines, 2014. "Financial Stability and Financial Inclusion," Microeconomics Working Papers 24278, East Asian Bureau of Economic Research.
    5. Sandra F. Braunstein & Carolyn Welch, 2002. "Financial literacy: an overview of practice, research, and policy," Federal Reserve Bulletin, Board of Governors of the Federal Reserve System (U.S.), issue Nov, pages 445-457.
    6. Mark M. Pitt & Shahidur R. Khandker & Omar Haider Chowdhury & Daniel L. Millimet, 2003. "Credit Programs for the Poor And the Health Status of Children in Rural Bangladesh," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 44(1), pages 87-118, February.
    7. Tambunan, Tulus, 2015. "Financial Inclusion, Financial Education, and Financial Regulation: A Story from Indonesia," ADBI Working Papers 535, Asian Development Bank Institute.
    8. 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.
    9. Llanto, Gilberto M., 2015. "Financial Inclusion, Education, and Regulation in the Philippines," ADBI Working Papers 541, Asian Development Bank Institute.
    10. Lewis, Sue & Lindley, Dominic, 2015. "Financial Inclusion, Financial Education, and Financial Regulation in the United Kingdom," ADBI Working Papers 544, Asian Development Bank Institute.
    11. World Bank, 2008. "Finance for All? Policies and Pitfalls in Expanding Access," World Bank Publications, The World Bank, number 6905.
    12. Joseph P. Kaboski & Robert M. Townsend, 2005. "Policies and Impact: An Analysis of Village-Level Microfinance Institutions," Journal of the European Economic Association, MIT Press, vol. 3(1), pages 1-50, March.
    13. Barua, Abheek & Kathuria, Rajat & Malik, Neha, 2016. "The Status of Financial Inclusion, Regulation, and Education in India," ADBI Working Papers 568, Asian Development Bank Institute.
    14. Hannig, Alfred & Jansen, Stefan, 2010. "Financial Inclusion and Financial Stability: Current Policy Issues," ADBI Working Papers 259, Asian Development Bank Institute.
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    Cited by:

    1. Babych, Yaroslava & Grigolia, Maya & Keshelava, Davit, 2018. "Financial Inclusion, Financial Literacy, and Financial Education in Georgia," ADBI Working Papers 849, Asian Development Bank Institute.
    2. repec:spr:soinre:v:139:y:2018:i:3:d:10.1007_s11205-017-1770-6 is not listed on IDEAS

    More about this item

    Keywords

    financial inclusion; banks; financial regulation; payments systems; small and medium-sized enterprises; financial education;

    JEL classification:

    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • G28 - Financial Economics - - Financial Institutions and Services - - - Government Policy and Regulation
    • I22 - Health, Education, and Welfare - - Education - - - Educational Finance; Financial Aid
    • O16 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Financial Markets; Saving and Capital Investment; Corporate Finance and Governance

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