Financial Inclusion : Can it Meet Multiple Macroeconomic Goals?

Author/Editor: Ratna Sahay ; Martin Cihak ; Papa N'Diaye ; Adolfo Barajas ; Srobona Mitra ; Annette Kyobe ; Yen Nian Mooi ; Reza Yousefi
Publication Date: September 15, 2015
Electronic Access: Free Full text (PDF file size is 2,354KB).
Use the free Adobe Acrobat Reader to view this PDF file

Summary: Using several recently available global datasets, this Staff Discussion Note examines macroeconomic effects of financial inclusion. It finds significant benefits to economic growth from financial inclusion, but the benefits diminish as financial inclusion and depth become large. Broadening access to credit can compromise economic and bank stability in countries with weak bank supervision. Other forms of financial inclusion—such as access to and use of bank accounts, branches, and ATMs—do not hurt stability, and can be promoted extensively. The note finds that gaps in financial inclusion are associated with economic inequality, but the association appears relatively weak.
Series: Staff Discussion Notes No. 15/17
Subject(s): Financial services | Economic growth | Inclusive growth | Household credit | Business enterprises | Financial sector | Income inequality | Gender | Economic stability | Financial stability

Publication Date: September 15, 2015
ISBN/ISSN: 9781513585154 Format: Paper
Stock No: SDNEA2015017 Pages: 33
US$10.00 (Academic Rate:
US$10.00 )
Please address any questions about this title to