Cover IMF Working Papers
Drivers of Financial Access: the Role of Macroprudential Policies
Author:
Ms. Corinne C Delechat
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,
Lama Kiyassehnull

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Ms. Margaux MacDonald
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Rui Xunull

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Series:
IMF Working Papers
Volume/Issue:
Volume 2020: Issue 074
Language:
English
Publication Date:
29 May 2020
DOI:
https://doi.org/10.5089/9781513545677.001
ISBN:
9781513545677
ISSN:
1018-5941
Pages:
41
Keywords:
WP; informal financial services; IMF staff; low income; asset ratio; SSA sample; loan restriction; Financial inclusion; Mobile banking; Macroprudential policy; Macroprudential policy instruments; Sub-Saharan Africa; Global; formal financial services; financial service access; SSA population
Legal-disclaimer:
IMF Working Papers describe research in progress by the author(s) and are published to elicit comments and to encourage debate. The views expressed in IMF Working Papers are those of the author(s) and do not necessarily represent the views of the IMF, its Executive Board, or IMF management.
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This study analyzes the drivers of the use of formal vs. informal financial services in emerging and developing countries using the 2017 Global FINDEX data. In particular, we investigate whether individuals’ choice of financial services correlates with macro-financial and macro-structural policies and conditions, in addition to individual and country characteristics. We start our analysis on middle and low-income countries, and then zoom in on sub-Saharan Africa, currently the region that most relies on informal financial services, and which has the largest uptake of mobile banking. We find robust evidence of an association between macroprudential policies and individuals’ choice of financial access after controlling for personal and country-level characteristics. In particular, macroprudential policies aimed at controlling credit supply seem to be associated with greater resort to informal financial services compared with formal, bank-based access. This highlights the importance for central bankers and financial sector regulators to consider the potential spillovers of monetary policy and financial stability measures on financial inclusion.
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Cover IMF Working Papers
IMF Working Papers
ISSN:
1018-5941
Publisher:
International Monetary Fund
Volume 2020: Issue 074