Financial Inclusion in Asia - Issues and Policy Concerns

Preface and Introduction

Part I—Measurement and Determinants

Part II—Financial Inclusion: Importance and Implications

Part III—Financial Inclusion in Asia: Country Experiences

Acknowledgments

Contents

About the Contributors

About the Editors

List of Figures

List of Tables

Part I: Measurement and Determinants

1: Measuring Financial Inclusion for Asian Economies

Introduction

Defining and Measuring Financial Inclusion: A Brief Review

Index of Financial Inclusion (IFI)

Methodology

Index of Financial Inclusion for Asian Economies

Banking Penetration (Dimension 1)

Availability of Banking Services (Dimension 2)

Usage (Dimension 3)

Choice of Mi and mi for Dimension Indexes

Weights Assigned to the Dimensions

IFI for Asian Countries, 2004–2013

Countries by IFI Categories

IFI by Income Categories

IFI by Regional Grouping

IFI Level and Features of Banking Sector

Conclusion

References

2: Determinants of Financial Inclusion in Asia

Introduction

Data

Indicators of Financial Inclusion

Determinants of Financial Inclusion

Methodology

Determinants of Financial Inclusion Indicators

Conclusion

References

Part II: Financial Inclusion: Importance and Implications

3: Does Financial Inclusion Reduce Poverty and Income Inequality in Developing Asia?

Introduction

Related Literature

Financial Inclusion Indicator

Empirical Methodology and Data Sources

Empirical Results

Summary and Policy Implications

References

4: Financial Inclusion and Monetary Policy in Emerging Asia

Introduction

Measuring Financial Inclusion in Emerging Asia

Financial Inclusion and Monetary Policy: Some Theoretical Arguments

Empirical Evidence on Interest Rate Sensitivity

Financial Inclusion and Monetary Policy Targets

Conclusion

References

Part III: Financial Inclusion in Asia: Country Experiences

5: Financial Inclusion in Indonesia: Moving Towards a Digital Payment System

Introduction

Current State of Financial Inclusion in Indonesia

How to Measure Financial Inclusion?

Indonesia’s Exposure to Financial Services

Financial Services Among the Poor and Vulnerable

Promoting Financial Services to the Poor and Vulnerable

G-to-P Payment for Financial Inclusion

Microcredit Programmes for the Poor

Models for Financial Inclusion

Initiatives: Saving and Credit Products

Greater Inclusion Through the Payment System

Mobile Money for G2P Transfer

Indonesia: Moving Towards a Digital Payment System

National Strategies

Adopted Model for Indonesia

Branchless Banking with a Digital Payment System

Regulatory Environment

Jump Start the Model

Challenges and Way Forward

Avoiding Inactive/Dormant Accounts

From Payments to Other Services

Conclusion

References

6: Financial Inclusion in Sri Lanka: Current Status and Issues

Introduction

Financial Sector in Sri Lanka

Formal Financial Institutions

Semiformal Financial Institutions

Co-operatives

NGOs and Companies Providing Microfinance

Samurdhi/Divineguma Banks

Geographical Coverage of Financial Institutions

Financial Inclusion: Where Does Sri Lanka Stand Within the Asian Region?

Financial Inclusion: A Household-Level Analysis

Financial Inclusion in Sri Lanka: Issues and Challenges

Conclusions

References

7: Microfinance and Financial Inclusion in India

Introduction

Microfinance in India Today: A Snapshot

Microfinance in India: A Brief History

1950–1970 (Background)

1970–1990 (Genesis)

1990–2010 (The Take-Off)

2010–2011 (Andhra Pradesh Crisis)

2011–2015 (The Slow Rebound)

A Credit Bureau

Drafting of a New Bill

Mor Committee Recommendations for Policy

Bandhan Gets Banking Licence

Recovery of the Sector

Establishment of the Micro Units Development and Refinance Agency Bank

Conclusion

References

Summary and Conclusions

Index