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Macroprudential regulation and financial inclusion: Any difference between developed and developing countries?

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  • Raksmey, Uch
  • Lin, Ching-Yang
  • Kakinaka, Makoto

Abstract

In this study, we provide evidence of the negative influence of macroprudential regulation on financial inclusion. Our results suggest that in developing countries, macroprudential regulation leads to adverse effects on the use of banking services because some people are prevented from accessing the credit market. The results remain robust even when we change the measure of financial inclusion to indicators of mobile banking. In developed countries, however, the effect is complicated. Macroprudential regulation still decreases the use of banking services, but it also increases people’s access to banking services. This finding implies that banks might have responded to the regulations by expanding their geographic coverage or engaging in noninterest income activities.

Suggested Citation

  • Raksmey, Uch & Lin, Ching-Yang & Kakinaka, Makoto, 2022. "Macroprudential regulation and financial inclusion: Any difference between developed and developing countries?," Research in International Business and Finance, Elsevier, vol. 63(C).
    • Handle: RePEc:eee:riibaf:v:63:y:2022:i:c:s0275531922001453
    DOI: 10.1016/j.ribaf.2022.101759
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    2. Md Jamil, Abd Rahim & Law, Siong Hook & Khair-Afham, M.S. & Trinugroho, Irwan, 2024. "Financial inclusion and income inequality in developing countries: The role of aging populations," Research in International Business and Finance, Elsevier, vol. 67(PA).

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    More about this item

    Keywords

    Macroprudential regulation; Policy target; Financial inclusion; access to and use of banking services;
    All these keywords.

    JEL classification:

    • E58 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Central Banks and Their Policies
    • G20 - Financial Economics - - Financial Institutions and Services - - - General
    • G28 - Financial Economics - - Financial Institutions and Services - - - Government Policy and Regulation

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