IDEAS home Printed from https://ideas.repec.org/a/wsi/gejxxx/v21y2021i02ns2194565921500093.html
   My bibliography  Save this article

Financial Literacy And Financial Inclusion Effects On Stability And Competitiveness Indicators In The Banking Sector: Cross Country Evidence For Africa And The World

Author

Listed:
  • JOÃO JUNGO

    (Research Unit on Governance Competitiveness and Public Policies (GOVCOPP), Department of Economics Management, Industrial Engineering and Tourism (DEGEIT), University of Aveiro, Campus Universitário de Santiago, 3810-193 Aveiro, Portugal)

  • MARA MADALENO

    (Research Unit on Governance Competitiveness and Public Policies (GOVCOPP), Department of Economics Management, Industrial Engineering and Tourism (DEGEIT), University of Aveiro, Campus Universitário de Santiago, 3810-193 Aveiro, Portugal)

  • ANABELA BOTELHO

    (Research Unit on Governance Competitiveness and Public Policies (GOVCOPP), Department of Economics Management, Industrial Engineering and Tourism (DEGEIT), University of Aveiro, Campus Universitário de Santiago, 3810-193 Aveiro, Portugal)

Abstract

Financial inclusion has allowed financial products with very high-interest rates and complex conditions to become increasingly affordable. Financial inclusion programs, which aim to reach all social strata, strongly expose financial institutions to risk and particularly credit risk. That said, additional interventions such as financial education of those included are needed. We aim to examine the impact of financial literacy and financial inclusion of households on bank performance. Specifically, we want to examine the impact of financial literacy on credit risk, competitiveness among banks and financial stability. The FGLS estimation results suggest that financial literacy and financial inclusion reduce credit risk and enhance the stability of banks, and regarding competitiveness, our results were inconclusive as they show different effects for each competitiveness indicator, although they point to improved competitiveness in some cases. This research allows policymakers to understand that individual financial attitudes can be reflected in the general welfare of financial institutions and encourages the intensification of programs aimed at improving household financial literacy.

Suggested Citation

  • Joãƒo Jungo & Mara Madaleno & Anabela Botelho, 2021. "Financial Literacy And Financial Inclusion Effects On Stability And Competitiveness Indicators In The Banking Sector: Cross Country Evidence For Africa And The World," Global Economy Journal (GEJ), World Scientific Publishing Co. Pte. Ltd., vol. 21(02), pages 1-30, June.
    • Handle: RePEc:wsi:gejxxx:v:21:y:2021:i:02:n:s2194565921500093
    DOI: 10.1142/S2194565921500093
    as

    Download full text from publisher

    File URL: http://www.worldscientific.com/doi/abs/10.1142/S2194565921500093
    Download Restriction: Access to full text is restricted to subscribers
    File URL: https://libkey.io/10.1142/S2194565921500093?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:wsi:gejxxx:v:21:y:2021:i:02:n:s2194565921500093. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Tai Tone Lim (email available below). General contact details of provider: https://www.worldscientific.com/worldscinet/gej .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.