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on Financial Literacy and Education |
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Issue of 2018‒12‒24
six papers chosen by |
| By: | Thath, Rido |
| Abstract: | Microfinance is considered one of the effective tools in reducing poverty. In the last two decades, Cambodian microfinance industry has made rapid growth in asset, loan and deposit. Microfinance institutions have extended their services to all corner of the country and some have transformed from a donor-assisted NGO program to a full-fledged commercial bank. During the process of the growth of the industry, many borrowers have benefited and been able to move out of poverty while other become over-indebted and lose their asset due to factors such as low financial literacy and the ease to access multiple sources of loan. At the national level, financing microfinance may crowd out the fund for financing small and medium enterprises, and other types of business. Various government response such as the initiative to improve financial literacy and the imposition of interest cap may help reduce the problem of over-indebtedness at the individual borrower level. However, for long run development, they also should consider addressing the trade-off between allocating scarce fund between micro businesses, and small and medium enterprises. |
| Keywords: | microfinance, Cambodia |
| JEL: | G21 |
| Date: | 2018–03 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:89969&r=fle |
| By: | Suresh De Mel; Craig McIntosh; Ketki Sheth; Christopher Woodruff |
| Abstract: | In developing economies, mobile-linked services have the potential to significantly reduce transaction costs and provide a truly new conduit that could be used to facilitate the flow of savings into banks. We test this premise by introducing a product that permits Sri Lankan households to deposit mobile airtime balances into a formal bank using a new mobile money interface. Using high frequency panel survey data and randomizing access and prices at the individual level, we find that there are moderate percentage increases in savings deposits with the partner institution and formal banks more generally, but no change in overall savings deposits. When the transaction costs are completely removed, only 26 percent of those offered the service use it, and 7 percent use it frequently. Overall, our results imply that transaction costs may not be a significant barrier to increasing deposits, limiting the potential gains of mobile-linked savings products for financial inclusion. |
| JEL: | G21 O12 O16 |
| Date: | 2018–12 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:25354&r=fle |
| By: | Muduli, Silu; Ramana, D. V. |
| Abstract: | Financial capability of an individual is ability to use and manage financial products for current and future financial needs with adequate financial knowledge. United Kingdom Financial Services Authority, 2006 defines financial capability as composition of four dimensions: financial management to meet current needs, financial planning for ahead, management of financial products, and financial knowledge. Taking all the above four dimensions into account, paper studies financial capability from a sample of street vendors in Bhubaneswar, India. The financial capability index for each individual has been calculated with recently developed index measure that satisfies MANUSH (Monotonicity, Anonymity, Normalisation, Uniformity, Shortfall sensitivity, Hiatus sensitivity to level) axioms. Paper finds that individual characteristics and business characteristics such as education, age, business experience, daily turnover, affects the financial capability of the individuals. Moreover, paper finds, street vendors in regions with higher bank branches have higher financial capability. |
| Keywords: | Financial capability,Financial literacy,Financial inclusion |
| JEL: | O18 R58 O20 |
| Date: | 2018 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:esprep:187423&r=fle |
| By: | Christopher Henry; Kim Huynh; Angelika Welte |
| Abstract: | As the sole issuer of bank notes, the Bank of Canada conducts Methods-of-Payment (MOP) surveys to obtain a detailed and representative snapshot of Canadian payment choices, with a focus on cash usage. The 2017 MOP Survey is the third iteration. This paper finds that the overall cash volume and value shares are 33 per cent and 15 per cent, respectively. These results highlight the ongoing decrease of cash usage in terms of volume and value compared with 2009 (54 per cent and 23 per cent, respectively) and 2013 (44 per cent and 23 per cent, respectively). Consumers still rate cash as an easy-to-use, low-cost, secure and widely accepted payment method, and it is commonly used among respondents who are aged 55 and above, have an income of less than $45,000, have only a high school education, or have a low rate of financial literacy. The paper also provides comprehensive details on Canadians’ adoption and use of payment innovations such as contactless credit and debit cards, as well as mobile and online payments. |
| Keywords: | Bank notes, Digital Currencies, Financial services |
| JEL: | D83 E41 |
| Date: | 2018 |
| URL: | http://d.repec.org/n?u=RePEc:bca:bocadp:18-17&r=fle |
| By: | Leila Aghabarari; Ahmed Rostom; Rishabh Sinha |
| Keywords: | Conflict and Development - Conflict and Fragile States Finance and Financial Sector Development - Access to Finance Finance and Financial Sector Development - Banks & Banking Reform Finance and Financial Sector Development - Finance and Development Finance and Financial Sector Development - Financial Literacy |
| Date: | 2018–03 |
| URL: | http://d.repec.org/n?u=RePEc:wbk:wboper:30040&r=fle |
| By: | Amariei, Cosmina |
| Abstract: | Notwithstanding the significant differences between member states, the overexposure to bank deposits as well as the equity underweight in the portfolios of European households represent structural issues in Europe. Both market and regulatory developments should head in the direction of increasing access to suitable retail savings/investment products with comparable cost structures and stable returns in the long run. The onus of financial education should not only be on retail investors, but also on advisers and distributors, i.e. strictly monitored, properly trained professionals, regardless of captive or open distribution models. Multiple stakeholders need to be on board in working towards building and implementing the business-financial-societal case for sustainability. The use of financial regulation as a tool to provide incentives or disincentives for retail/institutional investors should be exercised with great caution and be complemented by other appropriate sectoral policies. This is essential in order to avoid a build-up in asset bubbles and further misallocation of resources. Moving sustainability from a niche segment will require a larger pool of sustainable assets and restoring confidence in the capacity of capital markets to generate long-term value in the real economy. |
| Date: | 2018–07 |
| URL: | http://d.repec.org/n?u=RePEc:eps:ecmiwp:13799&r=fle |