Financial Inclusion, Regulation, and Education
Access to affordable financial services for low-income households and small businesses in some Asian countries remains low, impeding economic development and contributing to inequality of income and opportunities. Research in this area identifies and evaluates policy options for expanding financial inclusion while maintaining financial stability.
Increasing financial inclusion involves taking a closer look at financial education, especially how financial services on offer can help lift up disadvantaged segments of society. Financial education can be pursued at all levels of schooling (primary, secondary, tertiary, and adult or even postretirement) and geographic location. For example, people in rural areas can open postal savings accounts at post offices and mobile post offices can collect deposits from farmers and small businesses. Regional banks can handle crowdfunding vehicles such as hometown investment trust funds to support local businesses and individuals. Such services can help small businesses in rural areas access low-cost finance to start up and/or expand their activities. This also addresses the issue of high interest rates often charged by moneylenders.
Despite potential benefits, financial education in many Asian countries is either lacking or inadequate. Moreover, financial regulation and supervision of moneylenders in Asia and the Pacific needs to be established. Among many others, this study examines issues related to financial inclusion, regulation, and education through cross-country statistical studies and country case studies of Asian economies.
Revisiting the Public Debt Stability Condition: Rethinking the Domar ConditionPublic debt sustainability depends on interest rate sensitivity to changes in government bond supply and demand.
Europe and Northeast Asia – Different Responses to Financial CrisesThe tensions between national sovereignty and the need for democratic accountability make pursuing international coordination very challenging.
Embracing Responsible Innovation and Empowering Consumers in the Digital AgeThe financial literacy rates around the world are not even at 37% on average, and the top countries have rates that are barely above 70%.
Does Fintech Contribute to Systemic Risk? Evidence from the US and EuropeIt is important to include fintech firms when considering the regulation of the financial industry.
Macroeconomic Challenges and the Resilience of Emerging Market Economies in the 21st CenturyInflation targeting works well with independent central banks, yet fiscal dominance concerns may hinder the efficacy and independence of central banks.
Financial inclusion for women has been embraced by policy makers as an important development priority. However, despite women having lower risk preferences and higher creditworthiness, the gender gap in access to finance is still prevalent in the traditional credit market.
Currently at the frontier of financial development, cryptocurrency provides both opportunities and risks in financial markets and has driven a large interest in its early years.
More than 1 billion adult Asians rely on the region’s 350,000 post offices. Over 2 million employees in more than 350,000 post offices and agents across Asia serve 1 billion of the 3.2 billion adults in the region (more than 57% of the world’s adult population) by providing basic financial services, including the receipt of remittances.
The world economy at present is in the middle of profound adjustment. Slow economic growth and obvious economic divisions are resulting in the self-fulfilling “low-growth trap”, while productivity is declining all over the world and income inequality is worsening at the country level.
Financial literacy has gained an important position in the policy agenda of many countries, and the importance of collecting informative, reliable data on the levels of financial literacy across adult populations has been widely recognized (OECD/INFE 2015a).
The World Bank (2014) estimates that international remittances to developing countries reached $436 billion in 2014. Remittances to the East Asia and the Pacific region and the South Asia region account for the largest and second-largest shares in the world.
International capacity cooperation was a 2014 addition to the “Go Global” policy suite that the People’s Republic of China’s (PRC) central bureaucracy expanded throughout 2016. It is the result of seeking a way forward from “new normal” low industrial growth rates and is a novel solution to the industrial capacity utilization problems the PRC has suffered since the 2008–2009 spending stimulus flooded into traditional industries.
Africa and Asia are latecomers to urbanization. In these two continents, less than half live in urban centers, while elsewhere, more than 70% of people do. But Africa and Asia are now rapidly urbanizing, with Asian cities growing at an average of 1.5% per year and Africa’s at 1.1% per year.
Bank credit is a crucial financing tool for micro, small, and medium-sized enterprises (MSMEs) given their difficulty in entering equity markets. However, accessing bank credit is not as easy as one might think. Specifically, MSMEs often face difficulties when they need to provide valid collateral to loan officers (Cowan, Drexler, and Yañez, 2015).
The fiscal burden of public pensions in most emerging Asian economies is relatively small, reflecting relatively young populations and limited coverage of the retired-age population in public pension programs.
In theory, a distortion refers to a departure from the perfect competitive equilibrium with no externalities and in which resources have been optimally allocated so that each economic agent maximizes his or her own welfare.
When Asia was hit by its regional financial crisis 20 years ago, Asian policy makers were quick to call for regional solutions to what was perceived to be a common problem: Asian countries’ dependence on foreign finance.
Everybody from President Trump to the Global Infrastructure Forum is trying to think of innovative ways to attract long-term private and institutional investors to pay for the huge and largely unmet demand for new highways, railways, and dams.
For a number of years, the central banks of the major advanced economies have pursued historically unprecedented ultra-low interest rate policies and negative interest rate policies.
As economies in East Asia and the Pacific (EAP) have developed, they have also become important in international financial transactions, both as sources and destinations of cross-border bank lending, foreign direct investment (FDI), and portfolio investments.
The “middle income trap” captures the situation where a middle income country can no longer compete internationally in standardized, labor-intensive commodities because wages are relatively too high, and it can also not compete in higher value added activities on a broad enough scale because productivity is relatively too low. The result is slow growth, stagnant or falling wages, and a growing informal economy.
The Fukushima Daiichi nuclear disaster was an energy accident at the Fukushima No. 1 Nuclear Power Plant in Fukushima, Japan, initiated primarily by the tsunami that followed the Tohoku earthquake on 11 March 2011 and led to a nuclear shutdown in the country. Japan substituted the loss of nuclear power with fossil fuels, such as oil, gas, and coal, and became more dependent on their imports and consumption.
The Bank of Japan (BOJ) announced in September last year that it would be switching the focus of its quantitative easing program from monetary base targeting to controlling the shape of the yield curve (Bank of Japan, 2016). A brief comparison of the two frameworks is as follows. The previous monetary easing framework, Quantitative and Qualitative Monetary Easing (QQE) with a Negative Interest Rate, set out three policy dimensions: quantity, quality, and interest rates.
Japan and the United States (US) are at similar levels of economic development, yet their income distributions are considerably different. Whereas Japan has a relatively equal income distribution, the US is marked by a high level of income inequality. This blog looks at the sources of income inequality in both countries?
In the 1960s, Kaname Akamatsu (1961) described the gradual relocation of industries from the advanced industrialized countries in East Asia to the less advanced countries during the latter’s economic catch-up process as the “flying geese” pattern.
Domestic banking crises often originate in the real estate sector. Therefore, one might conclude that mortgage lending is negative for financial stability.
In the aftermath of the global financial crisis (GFC) of 2007–2009, financial literacy and financial education are receiving increasing attention worldwide.
A key lesson of the 2008 global financial crisis (GFC) was the importance of containing systemic financial risk and maintaining financial stability.
Small and medium-sized enterprises (SMEs) are a very important part of Asia’s economy. In this article, we explore SMEs and their financing issues with respect to the performance of SMEs in international trade, based on the sample of more than 8,000 companies across the People’s Republic of China (PRC) and Association of Southeast Asian Nations (ASEAN) member states.
Workshop on Fostering Sustainable SME Development and Firm Performance in Asia amid De-GlobalizationThe event will examine the findings of empirical research submitted in response to a call for papers on productivity drivers in countries in Asia and the Pacific amid de-globalization.
2019 IAFICO Annual Conference: Global Forum for Financial ConsumersThis conference will feature the potential of financial technology to advance financial inclusion, changing consumer protection and regulatory needs, and emerging opportunities for greater international development cooperation in finance.
ADBI Sessions on Financial Inclusion and Financial Literacy, Financial Regulation, SME Finance, and Infrastructure Development: Seventh Seminar on Asia and the Pacific EconomiesThe ADBI sessions will examine cutting-edge research and policy solutions for advancing financial inclusion and financial literacy, financial regulation, SME finance, and infrastructure development.
OECD-ADBI-BoL-GIZ Conference on Financial Literacy and Consumer ProtectionDiscussion on how to increase financial literacy and strengthen consumer protection to support financial inclusion In the CLMV region.
8th Annual Asia Pacific Financial Inclusion Forum—The Inclusion Imperative: Advancing Policies, Targets, and PlansPolicy dialogue bringing together senior policy makers to discuss solutions to address financial inclusion.
ADBI Sessions on Financial Inclusion, Financial Literacy, and Infrastructure Development: Sixth Seminar on Asia and the Pacific EconomiesSpecial ADBI sessions on financial inclusion, financial literacy, and infrastructure development, featuring research papers by ADBI staff and outside contributors.
Technical Conference on Financial Inclusion, Regulation, Financial Literacy and Education in Central Asia and South CaucasusTo assess the current situation of financial inclusion, regulation, financial literacy and education in 7 countries in the Central Asia and South Caucasus (CASC) region.
2017 APEC Asia-Pacific Forum on Financial InclusionPolicy dialogue to facilitate information exchange on improving financial inclusion and tackling challenges of digitization in Asia and the Pacific.
Seminar: Towards a New Scoring Model for Small and Medium-Sized Enterprises (SMEs)The Risk Data Bank of Japan (RDB) will introduce new approaches to credit scoring for small and medium-sized enterprises (SMEs).
Determinants and Impacts of Financial Literacy in Cambodia and Viet NamThis seminar will analyze the state of financial literacy in Cambodia and Viet Nam.
Financial Inclusion, Regulation, and Education in AsiaPolicies to promote financial inclusion need to be aligned with economic incentives; otherwise the results may miss targeted groups. Simply setting quotas for financial access for target groups is unlikely to ensure access for the neediest groups. Peter Morgan, ADBI senior consultant for research, explains that a thriving microfinance sector can make an important contribution to financial inclusion.
As finance becomes more inclusive, financial services will reach people who have no experience with formal finance structures, and they may fail to use the services fully or properly. Financial education is a crucial component of successful financial inclusion. Even in advanced economies, significant gaps remain in financial literacy.
Putting savings to work is crucial for Asia’s developing economies. In developing Asia, however, access to credit, savings and payment services remains limited. In 2014, only 36 percent of adults in East Asia and the Pacific had formal savings accounts and only 11 percent had access to formal credit.
Post offices can deliver financial services to people who don’t have access to traditional banks. But developing efficient postal finance isn’t easy. Although it can have a powerful presence in an economy, postal finance can also be inefficient and corrupt.
Naoyuki Yoshino, dean of the Asian Development Bank Institute, told VTC10–NETVIET in Ha Noi, Viet Nam, that small business owners need education to be able to access finance.
Micro insurance could potentially reach 3 billion people and earn the industry up to $30 billion from insurance premiums. But only about 5% of the total market in Asia, Africa, and Latin America is covered, and only about 20% of micro insurance is being distributed by microfinance institutions globally.