Does financial inclusion mitigate credit boom-bust cycles?

López, Tania; Winkler, Adalbert

doi:10.1016/j.jfs.2019.06.001

Cited by 31 publications

(13 citation statements)

References 46 publications

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“…In addition, banking sector stability, as proxied by the Z-score is found to contribute positively to bank performance. These findings are consistent with findings from Shihadeh et al (2018), Mallick (2017), andL opez andWinkler (2019). Moreover, the coefficients of GDP per capita show that banks in emerging markets tend to outperform those in the developed countries.…”

Section: The Empirical Resultssupporting

confidence: 90%

Does financial inclusion improve bank performance in the Asian region?

Nguyen

2021

Asian-Pac Economic Lit

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World Bank considers financial inclusion a fundamental and practical mechanism for reducing poverty and boosting prosperity in developing and emerging markets. However, the direct benefits of financial inclusion to bank performance appear to have been largely ignored in the academic literature, in particular in the emerging markets in the Asian region. Unlike previous studies, both bank and country characteristics are considered in this paper. The financial inclusion index is estimated using four sub-indices that can be classified into two groups: the penetration and utilisation of financial products and services. Principal component analysis and dynamic generalized method of moments (GMM) are used on a sample of 1507 banks in emerging markets in Asia for the 2008-17 period. Findings indicate that, across various scenarios, financial inclusion provides a positive and significant contribution to bank performance in the Asian region. In addition, a larger distance to the bankruptcy of banks and higher national economic growth will enhance bank performance.

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Section: The Empirical Resultssupporting

confidence: 90%

Does financial inclusion improve bank performance in the Asian region?

Nguyen

2021

Asian-Pac Economic Lit

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“…The impacts of CSR on firms’ performance and from financial inclusion to economic growth have been widely examined in previous studies (Lopez and Winkler, 2019; Neaime and Gaysset, 2018; Van et al , 2019; Kim et al , 2018). However, the important link between CSR activities and firms’ performance on financial inclusion at the firms’ level has been largely ignored in an emerging market such as Vietnam.…”

Section: Discussionmentioning

confidence: 99%

“…This study has provided the following theoretical implications. We note that previous studies mainly look at the impacts of CSR activities on corporate performance (Szegedi et al , 2020; Nobanee and Ellili, 2016; Wu and Shen, 2013) or financial inclusion on financial stability (Vo et al , 2020; Ahamed and Mallick, 2019; Lopez and Winkler, 2019). Existing literature on the issue appears to overlook the important role of CSR activities in financial inclusion, especially in emerging countries like Vietnam.…”

Section: Discussionmentioning

confidence: 99%

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Do corporate social responsibility and bank performance matter for financial inclusion in Vietnam?

Tran

Hoang

et al. 2021

JABS

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Purpose This paper aims to provide empirical evidence and policy implications on the link between corporate social responsibility, financial inclusion and financial performance of the banking sector in an emerging market. Design/methodology/approach This study uses data collected from the annual reports of 13 listed banks in Vietnam from 2011 to 2019. CSR is proxied by the ratio between charitable contributions and bank profits. Besides, this study uses the number of branches and the number of agents as the proxies for a level of financial inclusion. The generalized method of moments and various tests are used to ensure the robustness of the findings. Findings Findings in this study indicate that CSR activities do matter, and they contribute positively to financial inclusion. In addition, the bank’s size is also associated with an increased level of financial inclusion. Practical implications Findings from this study provide important implications for bank executives and policymakers in Vietnam in managing and extending CSR activities with the view of supporting and enhancing financial inclusion. Originality/value To the best of the author’s knowledge, this is the first empirical study in the context of the banking sector in Vietnam in which the impact of CSR activities and financial performance of the banking sector on financial inclusion at the bank level is examined.

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“…The literature has documented some determinants and consequences of financial inclusion. For example, López and Winkler (2019) examined whether financial inclusion could mitigate credit downturns and upturns. They found that higher levels of financial inclusion led to a decrease in credit growth.…”

Section: Determinants and Consequences Of Financial Inclusionmentioning

confidence: 99%

Does Economic Policy Uncertainty Reduce Financial Inclusion?

Ozili¹

2021

International Journal of Banking and Finance

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This study investigates whether the level of economic policy uncertainty (EPU) would reduce the level of financial inclusion. It was predicted that a high level of EPU could have a negative effect on the level of financial inclusion. It was argued that a high level of EPU would discourage financial institutions from providing basic financial services to low end customers and unbanked adults, and this would lead to a decrease in the level of financial inclusion. Using a sample of 22 countries, the study found that the level of EPU did not have a significant impact on financial inclusion. None of the nine indicators of financial inclusion were found to have a significant direct relationship with EPU. However, there was some evidence that the combined effect of a high level of EPU and high nonperforming loans could reduce financial inclusion, particularly through bank branch contraction and a reduction in the use of electronic payments. Furthermore, the use of formal accounts and credit cards would increase in times of high credit supply and when there was a high level of EPU.

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Does financial inclusion mitigate credit boom-bust cycles?

Cited by 31 publications

References 46 publications

Does financial inclusion improve bank performance in the Asian region?

Does financial inclusion improve bank performance in the Asian region?

Do corporate social responsibility and bank performance matter for financial inclusion in Vietnam?

Does Economic Policy Uncertainty Reduce Financial Inclusion?

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