Empowering Stability: Unveiling the Link between Financial Inclusion and Bank Resilience: A Comprehensive Review

Yeboah, Samuel (2023): Empowering Stability: Unveiling the Link between Financial Inclusion and Bank Resilience: A Comprehensive Review.

Abstract

This systematic review examines the link between financial inclusion (FI) and bank stability (BS). FI, defined as access to and usage of formal financial services by individuals and businesses, has gained significant attention as a policy goal in many countries. BS, on the other hand, is a critical aspect of financial system resilience and plays a key role in promoting economic growth and stability. The review synthesizes the existing literature to understand the potential linkages, mechanisms, and empirical evidence regarding the link between FI and BS. The findings highlight the complex nature of this link, with both positive and negative implications for BS arising from increased FI. The review concludes with policy implications and directions for future research.

• Item Type: MPRA Paper
• Language: English
• Keywords: FI, BS, access to finance, formal financial services, financial system resilience, economic growth.
• Subjects: G - Financial Economics > G2 - Financial Institutions and Services > G21 - Banks ; Depository Institutions ; Micro Finance Institutions ; Mortgages; G - Financial Economics > G2 - Financial Institutions and Services > G28 - Government Policy and Regulation; O - Economic Development, Innovation, Technological Change, and Growth > O1 - Economic Development > O16 - Financial Markets ; Saving and Capital Investment ; Corporate Finance and Governance

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