Can Islamic Banking Increase Financial Inclusion?
By Sami Ben Naceur, Adolfo Barajas, Alexander Massara. Social Science Research Network, 2015
169 citations recorded by the source corpus.
The paper analyses existing country-level information on the relationship between the development of Islamic banking and financial inclusion. In Muslim countries - members of the Organization for Islamic Cooperation (OIC) - various indicators of financial inclusion tend to be lower, and the share of excluded individuals citing religious reasons for not using bank accounts is noticeably greater than in other countries; Islamic banking would therefore seem to be an effective avenue for financial inclusion. We found, however, that although physical access to financial services has grown more rapidly in the OIC countries, the use of these services has not increased as quickly. Moreover, regression analysis shows evidence of a positive link to credit to households and to firms for financing investment, but this empirical link remains tentative and relatively weak. The paper explores reasons that this might be the case and suggests several recommendations to enhance the ability of Islamic banking to promote financial inclusion.
Subfields: Accounting, Economics and Econometrics, Urban Studies
View Paper: https://www.semanticscholar.org/paper/7b53f4f8485bdb6f1f9bfb870c48f86aa35382ec
Citations in the corpus
- Financial inclusion research around the world: A review (2020, unknown): “…& Divanbeigi, 2019), foreign bank entry (Leon & Zins, 2019), creating microfinance institutions or banks (Yi, Zhang, & Guo, 2018), Islamic banking (Naceur et al., 2017), optimal monetary policy (Mehrotra & Yetman, 2014), integrating financial services into post office shops (Anson, Berthaud,…”
- Is Islamic Banking Good for Growth? (2015, unknown): “…investment—notably by individuals who could not otherwise borrow because of a lack of assets that could act as a guarantee—and thereby growth.2 Ben Naceur et al. (2015) find that although physical access to financial services has grown more rapidly in member countries of the Organization for…”