The appropriate level of financial inclusion: The perspective of financial stability

Xiuping Hua, Jianda Bi, Haoqian Shi

Research output: Journal PublicationArticlepeer-review

5 Citations (Scopus)

Abstract

We construct a global financial inclusion index using data from the World Bank, IMF, and V-Lab and propose an inverted U-shaped relationship between financial inclusion and financial stability. The empirical evidence supports our hypotheses, and the impact of financial inclusion on financial stability is less prominent under strong regulation and supervision. In addition, we use our constructed financial inclusion index, capital adequacy ratio, market power, and macroeconomic variables to simulate and predict the financial crisis. Our research has important policy implications and provides valuable insights to financial regulatory authorities in making decisions related to financial inclusion and financial stability.

Original languageEnglish
Pages (from-to)167-178
Number of pages12
JournalChina Economic Quarterly International
Volume3
Issue number3
DOIs
Publication statusPublished - Sept 2023

Keywords

  • Financial inclusion
  • Financial stability
  • Systemic risk

ASJC Scopus subject areas

  • Geography, Planning and Development
  • General Economics,Econometrics and Finance
  • Sociology and Political Science
  • Social Sciences (miscellaneous)

Fingerprint

Dive into the research topics of 'The appropriate level of financial inclusion: The perspective of financial stability'. Together they form a unique fingerprint.

Cite this