Achieving financial inclusion: whatever it takes

Ozili, Peterson K (2022): Achieving financial inclusion: whatever it takes. Published in:

Abstract

This paper presents some policy ideas on how to achieve high levels of financial inclusion. It explores a number of policy options that can be used to achieve greater levels of financial inclusion. The paper argues that high levels of financial inclusion can be achieved by reducing interest rate; introducing conditional low interest rate; supporting monetary policies with welfare payments; reducing taxes; using targeted government spending; supporting fiscal policies with tax rebate, tax holiday or tax exemption; grant tax rebate to financial institutions; financial inclusion-environment decoupling; and de-risking the financial system.

• Item Type: MPRA Paper
• Language: English
• Keywords: financial inclusion, unbanked adults, interest rate, monetary policy, fiscal policies, environment, financial system, financial institutions, digital finance, tax.
• 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

References

Ait Lahcen, M., & Gomis‐Porqueras, P. (2021), “A model of endogenous financial inclusion: Implications for inequality and monetary policy”, Journal of Money, Credit and Banking, Vol. 53 No. 5, pp.1175-1209.

Anarfo, E. B., Abor, J. Y., Osei, K. A., & Gyeke-Dako, A. (2019), “Monetary policy and financial inclusion in sub-Sahara Africa: a panel VAR approach”, Journal of African Business, Vol. 20, No. 4, pp. 549-572.

Arner, D. W., Buckley, R. P., Zetzsche, D. A., & Robin, V. (2020), “Sustainability, FinTech and financial inclusion”, European Business Organization Law Review, Vol. 21 No. 1, pp. 7-35.

Atkinson, A., & Messy, F. A. (2013), “Promoting financial inclusion through financial education: OECD/INFE evidence, policies and practice”, OECD Working Papers on Finance, Insurance and Private Pensions, No. 34, OECD Publishing

Beck, T., Senbet, L., & Simbanegavi, W. (2015), “Financial inclusion and innovation in Africa: An overview”, Journal of African Economies, Vol. 24 No. 1. pp. 3-i11.

Jenik, I., & Lauer, K. (2017), “Regulatory sandboxes and financial inclusion”, Washington, DC: CGAP.

Morgan, P., & Pontines, V. (2014), “Financial stability and financial inclusion” ADBI Working Paper, No. 488.

Myers, J., Cato, M. S., & Jones, P. A. (2012), “An ‘alternative mainstream’? The impact of financial inclusion policy on credit unions in Wales”, Public Money & Management, Vol. 32 No. 6, pp. 409-416.