Munich Personal RePEc Archive

Optimal financial inclusion

Ozili, Peterson K (2020): Optimal financial inclusion. Forthcoming in:

[img]
Preview
PDF
MPRA_paper_101808.pdf

Download (664kB) | Preview

Abstract

This article reports the conditions for optimality in financial inclusion. The optimal level of financial inclusion is achieved when basic financial services are provided to members of the population at a price that is affordable and that price is also economically sufficient to encourage providers of financial services to provide such financial services on a continual basis. Any level of financial inclusion that does not meet these conditions is sub-optimal. The consequence of sub-optimal levels of financial inclusion are reported and I show that maintaining a sub-optimal level of financial inclusion – which is common in many countries – is incentive-inefficient both for users and suppliers of basic financial services.

UB_LMU-Logo
MPRA is a RePEc service hosted by
the Munich University Library in Germany.