Does Economic Policy Uncertainty Reduce Financial Inclusion?
This study investigates whether the level of economic policy uncertainty (EPU) would reduce the level of financial inclusion. It was predicted that a high level of EPU could have a negative effect on the level of financial inclusion. It was argued that a high level of EPU would discourage financial...
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| Format: | Article |
| Language: | English |
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UUM Press
2022
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| Online Access: | https://repo.uum.edu.my/id/eprint/29212/1/IJBF%2017%2001%202022%2053-80.pdf |
| _version_ | 1803629605027840000 |
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| author | Ozili, Peterson K |
| author_facet | Ozili, Peterson K |
| author_sort | Ozili, Peterson K |
| collection | UUM |
| description | This study investigates whether the level of economic policy uncertainty (EPU) would reduce the level of financial inclusion. It was predicted that a high level of EPU could have a negative effect on the level of financial inclusion. It was argued that a high level of EPU would discourage financial institutions from providing basic financial services to low end customers and unbanked adults, and this would lead to a decrease in the level of financial inclusion. Using a sample of 22 countries, the study found that the level of EPU did not have a significant impact on financial inclusion. None of the nine indicators of financial inclusion were found to have a significant direct relationship with EPU. However, there was some evidence that the combined effect of a high level of EPU and high nonperforming loans could reduce financial inclusion, particularly through bank branch contraction and a reduction in the use of electronic payments. Furthermore, the use of formal accounts and credit cards would increase in times of high credit supply and when there was a high level of EPU. |
| first_indexed | 2024-07-04T06:40:30Z |
| format | Article |
| id | uum-29212 |
| institution | Universiti Utara Malaysia |
| language | English |
| last_indexed | 2024-07-04T06:40:30Z |
| publishDate | 2022 |
| publisher | UUM Press |
| record_format | dspace |
| spelling | uum-292122023-03-05T08:32:48Z https://repo.uum.edu.my/id/eprint/29212/ Does Economic Policy Uncertainty Reduce Financial Inclusion? Ozili, Peterson K HG Finance This study investigates whether the level of economic policy uncertainty (EPU) would reduce the level of financial inclusion. It was predicted that a high level of EPU could have a negative effect on the level of financial inclusion. It was argued that a high level of EPU would discourage financial institutions from providing basic financial services to low end customers and unbanked adults, and this would lead to a decrease in the level of financial inclusion. Using a sample of 22 countries, the study found that the level of EPU did not have a significant impact on financial inclusion. None of the nine indicators of financial inclusion were found to have a significant direct relationship with EPU. However, there was some evidence that the combined effect of a high level of EPU and high nonperforming loans could reduce financial inclusion, particularly through bank branch contraction and a reduction in the use of electronic payments. Furthermore, the use of formal accounts and credit cards would increase in times of high credit supply and when there was a high level of EPU. UUM Press 2022 Article PeerReviewed application/pdf en cc4_by https://repo.uum.edu.my/id/eprint/29212/1/IJBF%2017%2001%202022%2053-80.pdf Ozili, Peterson K (2022) Does Economic Policy Uncertainty Reduce Financial Inclusion? International Journal of Banking and Finance (IJBF), 17 (1). pp. 53-80. ISSN 2590-423X https://doi.org/10.32890/ijbf2022.17.1.3 |
| spellingShingle | HG Finance Ozili, Peterson K Does Economic Policy Uncertainty Reduce Financial Inclusion? |
| title | Does Economic Policy Uncertainty Reduce Financial Inclusion? |
| title_full | Does Economic Policy Uncertainty Reduce Financial Inclusion? |
| title_fullStr | Does Economic Policy Uncertainty Reduce Financial Inclusion? |
| title_full_unstemmed | Does Economic Policy Uncertainty Reduce Financial Inclusion? |
| title_short | Does Economic Policy Uncertainty Reduce Financial Inclusion? |
| title_sort | does economic policy uncertainty reduce financial inclusion |
| topic | HG Finance |
| url | https://repo.uum.edu.my/id/eprint/29212/1/IJBF%2017%2001%202022%2053-80.pdf |
| work_keys_str_mv | AT ozilipetersonk doeseconomicpolicyuncertaintyreducefinancialinclusion |