Using panel data of twenty Asian countries over a period of six years (2011-2016), this research investigated the key determinants of financial inclusion among Asian countries via the Random Effects Model (REM). Financial inclusion has been considered as enabler for seven of the seventeen sustainable development goals, which brings access to financial services to all and directly contributes to poverty reduction, capacity buildings and equality. The main findings are that: (i) the countries with stronger economic growth and higher income have a significantly higher financial inclusion index, as people have more resources/incomes and better chances to utilize financial services; (ii) the higher the literacy, the better the financial inclusion as people with higher literacy understand the pros and cons of financial services and providers, better knowledge of using financial services wisely; (iii) unemployment rates had a negative impact on the financial inclusion index; (iv) surprisingly differing from previous studies, inflation, population density, network and deposit interest rate were not statistically significantly correlated with financial inclusion. Contribution/ Originality: This research investigated the key determinants of financial inclusion among Asian countries via REM. Four aspects relating to financial inclusion among Asian countries were deeply analyzed. 1. INTRODUCTION Financial inclusion is becoming a priority for policymakers, regulators and development agencies globally, as it has been defined as an enabler for seven of seventeen sustainable development goals (Demirgüç-Kunt et al., 2015; UNSGSA, 2016). The idea of promoting and developing financial inclusion was officially implemented in 2009, when the Queen of Netherlands became the Special Advocate of United Nations Secretary-General (UNSGSA, 2016). From that time, this matter was commonly known and developed to either propagandize or ameliorate financial services in order to foster universal access to the financial market. Financial inclusion is opposite to financial exclusion, and is defined simply as all individuals or small and medium enterprises having ability to access the formal services in the financial market (Sarma, 2008; Demirgüç
The purpose of this paper is to investigate the determinants of the Operational Self-Sustainability (OSS) of Vietnamese microfinance institutions (MFIs). This research uses both qualitative and quantitative research methods: (i) qualitative research was via in-depth interviews with ten microfinance practitioners, policymakers and researchers; (ii) quantitative research was conducted by using panel data of 34 MFIs in the period 2011-2015 with binary logistics and OLS regressions. Results are as follows: (i) MFIs' OSS in Vietnam are mainly determined by five key factors: portfolio at risk (PAR>30), capital structure, gross loan portfolio, scope of activities and legal form; (ii) OSS are most affected by legal status (social organizations have better OSS than formal MFIs or programs/projects), location (MFIs focus in one province have higher OSS than working nationwide or just in one district), capital structure (MFIs with more equity proportion have higher OSS); (iii) surprisingly, average loan size per borrower and age of MFIs do not have statistically significant correlation with OSS. The key recommendations are: (i) MFIs should focus on its professionality and increase its equity; (ii) related stakeholders such as State Bank of Vietnam should promote the enabling ecosystem for microfinance development to enhance poverty reduction and economic development.
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