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Financial Inclusion Disparities in the European Union

Author

Listed:
  • Cristina Zeldea

    (Institute for World Economy, Romanian Academy)

Abstract

The European Union is a leader when it comes to various inclusion indicators. At first glance, this would suggest that the EU enjoys a high level of financial inclusion. The analysis we performed reveals that the EU-level averages often hide extremes. While Western European countries have a very high level of financial inclusion, when we look at the countries in Eastern Europe, we can even talk about a financial exclusion of the population. The study relies on three sets of indicators, related to the use, geographical access, and digitalization of financial services. On a positive note, inclusion indicators have improved over the analyzed period. However, this improvement took place at different paces for the Member States and, as a result, disparities not only persisted, but even deepened in many cases.

Suggested Citation

  • Cristina Zeldea, 2021. "Financial Inclusion Disparities in the European Union," Global Economic Observer, "Nicolae Titulescu" University of Bucharest, Faculty of Economic Sciences;Institute for World Economy of the Romanian Academy, vol. 9(1), pages 82-90, June.
    • Handle: RePEc:ntu:ntugeo:vol9-iss1-82-90
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    References listed on IDEAS

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    1. Carin van der Cruijsen & Jakob de Haan & Ria Roerink, 2023. "Trust in financial institutions: A survey," Journal of Economic Surveys, Wiley Blackwell, vol. 37(4), pages 1214-1254, September.
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    3. World Bank, "undated". "Europe and Central Asia Economic Update, Fall 2019," World Bank Publications - Reports 32481, The World Bank Group.
    4. Demirguc-Kunt, Asli & Klapper, Leora, 2012. "Measuring financial inclusion : the Global Findex Database," Policy Research Working Paper Series 6025, The World Bank.
    5. Xu, Xiaoyan, 2020. "Trust and financial inclusion: A cross-country study," Finance Research Letters, Elsevier, vol. 35(C).
    6. Esselink, Henk & Gijsel, Lola Hernandez-van, 2017. "The use of cash by households in the euro area," Occasional Paper Series 201, European Central Bank.
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    More about this item

    Keywords

    financial inclusion; financial integration; disparities; European Union; financial services access; digitalization;
    All these keywords.

    JEL classification:

    • G20 - Financial Economics - - Financial Institutions and Services - - - General
    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • G50 - Financial Economics - - Household Finance - - - General
    • G53 - Financial Economics - - Household Finance - - - Financial Literacy

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