Financial sector development and the poor in developing countries: revisiting the access to finance channel
With the help of thorough literature survey, the present study proposes that formal financial services by commercial banks in the developing countries are primarily suitable for the non-poor population and hence acts as a medium-direct channel of financial development to affect the poor whereas the...
| Main Authors: | , |
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| Format: | Article |
| Language: | English |
| Published: |
General Association of Economists from Romania
2018-09-01
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| Series: | Theoretical and Applied Economics |
| Subjects: | |
| Online Access: |
http://store.ectap.ro/articole/1353.pdf
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| _version_ | 1819239529102442496 |
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| author | Atul MEHTA Joysankar BHATTACHARYA |
| author_facet | Atul MEHTA Joysankar BHATTACHARYA |
| author_sort | Atul MEHTA |
| collection | DOAJ |
| description | With the help of thorough literature survey, the present study proposes that formal
financial services by commercial banks in the developing countries are primarily suitable for the
non-poor population and hence acts as a medium-direct channel of financial development to affect
the poor whereas the semi-formal financial services by microfinance institutions specifically target
the poor in developing countries and thus act as a direct channel. The paper also documents the
divergent outcomes of lending through MFIs on the poor in rural areas and explains the coexistence
of formal/semi-formal and informal financial markets. The paper further suggests that the future
research in the area of finance-poor nexus may focus on providing comparative empirical evidence
with respect to the effect of formal, semi-formal and informal finance on the poor in developing
countries including the South Asian region. The result of such comparative studies would be of
interest to all the key stakeholders in the development finance arena. |
| first_indexed | 2024-12-23T13:53:34Z |
| format | Article |
| id | doaj.art-ed8d3b4d43e1430a99d54539e9b3c36b |
| institution | Directory Open Access Journal |
| issn | 1841-8678 1844-0029 |
| language | English |
| last_indexed | 2024-12-23T13:53:34Z |
| publishDate | 2018-09-01 |
| publisher | General Association of Economists from Romania |
| record_format | Article |
| series | Theoretical and Applied Economics |
| spelling | doaj.art-ed8d3b4d43e1430a99d54539e9b3c36b2022-12-21T17:44:32ZengGeneral Association of Economists from RomaniaTheoretical and Applied Economics1841-86781844-00292018-09-01XXV315316818418678Financial sector development and the poor in developing countries: revisiting the access to finance channelAtul MEHTA0Joysankar BHATTACHARYA1 SRM Institute of Science & Technology, Chennai, India Indian Institute of Management Indore, Indore, India With the help of thorough literature survey, the present study proposes that formal financial services by commercial banks in the developing countries are primarily suitable for the non-poor population and hence acts as a medium-direct channel of financial development to affect the poor whereas the semi-formal financial services by microfinance institutions specifically target the poor in developing countries and thus act as a direct channel. The paper also documents the divergent outcomes of lending through MFIs on the poor in rural areas and explains the coexistence of formal/semi-formal and informal financial markets. The paper further suggests that the future research in the area of finance-poor nexus may focus on providing comparative empirical evidence with respect to the effect of formal, semi-formal and informal finance on the poor in developing countries including the South Asian region. The result of such comparative studies would be of interest to all the key stakeholders in the development finance arena. http://store.ectap.ro/articole/1353.pdf financial sectorSouth Asiapovertyinequalitybank creditmicrocrediteconomic growth |
| spellingShingle | Atul MEHTA Joysankar BHATTACHARYA Financial sector development and the poor in developing countries: revisiting the access to finance channel Theoretical and Applied Economics financial sector South Asia poverty inequality bank credit microcredit economic growth |
| title | Financial sector development and the poor in developing countries: revisiting the access to finance channel |
| title_full | Financial sector development and the poor in developing countries: revisiting the access to finance channel |
| title_fullStr | Financial sector development and the poor in developing countries: revisiting the access to finance channel |
| title_full_unstemmed | Financial sector development and the poor in developing countries: revisiting the access to finance channel |
| title_short | Financial sector development and the poor in developing countries: revisiting the access to finance channel |
| title_sort | financial sector development and the poor in developing countries revisiting the access to finance channel |
| topic | financial sector South Asia poverty inequality bank credit microcredit economic growth |
| url |
http://store.ectap.ro/articole/1353.pdf
|
| work_keys_str_mv | AT atulmehta financialsectordevelopmentandthepoorindevelopingcountriesrevisitingtheaccesstofinancechannel AT joysankarbhattacharya financialsectordevelopmentandthepoorindevelopingcountriesrevisitingtheaccesstofinancechannel |