nep-fle New Economics Papers
on Financial Literacy and Education
Issue of 2020‒02‒24
five papers chosen by

  1. Determinants of Financial Inclusion in Africa: Evidence on Bank account ownership By Amina Haoudi; Ayoub Rabhi
  2. Modernizing Our Payments System; Fourth Annual Financial Literacy Day: Understanding Global Markets and Finance By Loretta J. Mester
  3. Free Riding in Loan Approvals : Evidence from SME Lending in Peru By Arraiz,Irani; Bruhn,Miriam; Roth,Benjamin N.; Ruiz Ortega,Claudia; Stucchi,Rodolfo Mario
  4. IFAD RESEARCH SERIES 56 The impact of migrants' remittances and investment on rural youth By Orozco, Manuel; Jewers, Mariellen
  5. Basel III Implementation and SME Financing : Evidence for Emerging Markets and Developing Economies By Fisera,Boris; Horvath,Roman; Melecky,Martin

  1. By: Amina Haoudi (CERAPE - Laboratoire de Coordination des Études et des Recherches en Analyse et Prévisions Économiques (CERAPE) - FSJES-Fès - Faculté des Sciences Juridiques, Economiques et Sociales de Fès); Ayoub Rabhi (CERAPE - Laboratoire de Coordination des Études et des Recherches en Analyse et Prévisions Économiques (CERAPE) - FSJES-Fès - Faculté des Sciences Juridiques, Economiques et Sociales de Fès)
    Abstract: The term "financial inclusion" implies the access to and use of banking services (bank accounts, savings, insurance, credits, payments, etc.) at a low cost for disadvantaged and low-income population in a country. In fact, banking services are considered as a public good. It is therefore necessary that the accessibility and equity in the use of banking services by the entire population must be among the main objectives of government policies and financial institutions, for it helps to meet the basic financial needs of the population in any country. The main objective of our study is to examine the determinants of bank account ownership which is considered to be the basic dimension of banking services use and therefore financial inclusion. In our paper, adopting an empirical approach of cross-sectional data, we study the elements that condition the ownership of a bank account in the African continent.
    Abstract: Le terme «inclusion financière» implique l'accès et l'utilisation des services bancaires (compte courant, épargne, assurance, crédit, paiements, etc.) à un faible coût pour la population défavorisée et à faible revenu dans un pays. En fait, les services bancaires ont un caractère de bien public. Il est donc nécessaire que l'accessibilité et l'utilisation équitable des services bancaires par l'ensemble de la population doivent figurer parmi les objectifs primordiaux des politiques gouvernementales et des institutions financières. En effet, cela permet de répondre aux besoins financiers de base de la population dans un pays quelconque. L'objectif principal de notre étude est donc d'examiner les déterminants de la détention d'un compte courant qui est considéré comme étant une dimension basique d'utilisation des services bancaires et par conséquent de l'inclusion financière. Dans notre papier, nous adoptons une approche empirique en données transversales afin d'analyser les éléments qui conditionnent la détention d'un compte courant dans le continent africain.
    Keywords: Keywords: Financial Inclusion,Africa,Cross-sectional data,banking services,Finance. Bank accounts,Services bancaires,Comptes courants.,Finance,Données transversales,Afrique,Mots-clés : Inclusion financière
    Date: 2018–05–04
  2. By: Loretta J. Mester
    Abstract: The Federal Reserve System plays an important role in helping to ensure that our payments system is efficient, secure, and effective. I recently became chair of the Financial Services Policy Committee (FSPC), which oversees the provision of payment services to depository institutions and the U.S. Treasury by the 12 Federal Reserve Banks. So as a follow-up to the discussion we just heard about new forms of payments, I thought it would be useful to provide you with an update on some of the Fed’s ongoing work to modernize the U.S. payments system, and then offer a policy maker’s perspectives on some payments innovations. Of course, the views I will present today are my own and not necessarily those of the Federal Reserve System or my colleagues on the Federal Open Market Committee.
    Keywords: financial literacy; payments system
    Date: 2020–02–14
  3. By: Arraiz,Irani; Bruhn,Miriam; Roth,Benjamin N.; Ruiz Ortega,Claudia; Stucchi,Rodolfo Mario
    Abstract: This paper provides evidence that commercial lenders in Peru free ride off their peers'screening efforts. Leveraging a discontinuity in the loan approval process of a large bank, the study finds that competing lenders responded to additional loan approvals by issuing approvals of their own. Competing lenders captured almost three-quarters of the new loans to previously financially excluded borrowers, greatly diminishing the profits accruing to the initiating bank. Lenders may therefore underinvest in screening new borrowers and expanding financial inclusion, as their competitors reap some of the benefit. The results highlight that information spillovers between lenders may operate outside credit registries.
    Date: 2019–12–03
  4. By: Orozco, Manuel; Jewers, Mariellen
    Abstract: In an increasingly globalized world community, rural international migration is often characterized by engagements or links that migrants establish with their home countries, home towns and relatives in their country of origin through transnational economic and social activities. This background paper analyses how migrants positively contribute to the sustainable economic development of rural youth in their countries of origin. Specifically, this paper details migrants’ contribution to youth rural development through transnational economic engagement, which positively impacts financial inclusion, creation of employment opportunities and the promotion of entrepreneurship. Transnational engagement activities include money transfers (family remittances), philanthropy, entrepreneurship, capital investment, homeland goods consumption and knowledge transfer. We find that youth are doubly disadvantaged relative to adults in rural areas and relative to their urban counterparts, making remittances and other forms of engagement particularly important in helping this especially vulnerable group. Transnational engagement that occurs in rural areas and targets issues such as education or nutrition can disproportionately benefit youth. Other transnational engagement, such as knowledge transfer or partnership, establishes youth as agents of their own development and economic well-being. Though the activities differ, underlying all forms of transnational engagement is a reinforcement of social and cultural identities and connection with countries of origin for both migrants and descendants of migrants.
    Keywords: Agribusiness, Agricultural and Food Policy, Agricultural Finance, Community/Rural/Urban Development, Consumer/Household Economics
    Date: 2019
  5. By: Fisera,Boris; Horvath,Roman; Melecky,Martin
    Abstract: This paper examines the effect of Basel III implementation on the access to finance of small and medium-size enterprises in 32 emerging markets and developing economies. Analyzing rich, repeated cross-sectional data and a panel of matched firm-bank data in a difference-in-differences setting with sample selection adjustment, the authors find a short-term, moderately negative effect of Basel III on small and medium-size enterprises'access to financing. The results suggest that firms with access to bank credit prior to Basel III implementation could have been affected less than firms that were initially on the fringes of financial inclusion?firms with only a bank account. The paper fails to find any additional heterogeneous effects across firm size or age, bank capitalization or liquidity, or across countries that transitioned to Basel III from Basel II versus Basel 2.5. Overall, the initial conditions of the banking system as well as of complementary business and financial regulation can co-determine the size of short-term costs from the newly implemented global financial regulation in emerging markets and developing economies.
    Date: 2019–12–02

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