- This event has passed.
Seminar : “Is financial inclusion good for bank stability? International evidence ” by Prof Sushanta Mallick (School of Business and Management Queen Mary University of London)
- « Seminar: “Dealing with uncertainty in designing India’s energy future” By Mr Suman Berry (Nonresident Fellow of the Brussels think-tank Bruegel, as well as a Senior Fellow of the Mastercard Center for Inclusive Growth)
- Interactive Session: “Current challenges of the Eurosystem and the EU” By Dr Johannes Beermann, (Member of the Executive Board of the Deutsche Bundesbank) »
Prof Sushanta Mallick (School of Business and Management Queen Mary University of London) is presenting a seminar on “Is financial inclusion good for bank stability? International evidence “.
Date: 2nd August 2017 (Wednesday)
Time: 4:30 pm
Venue: Seanza Conference Hall
Financial inclusion has become an important public policy priority following the recent global financial crisis. Yet, we know very little of how it impacts soundness of the providers of financial services. Using an international sample of 2,600 banks in 86 countries over the period 2004-12, we find that higher level of financial inclusion leads to greater bank stability. The positive association is particularly pronounced with those banks that have higher customer deposit funding share and lower marginal costs of producing output; and also with those that operate in countries with stronger institutional quality. The results are robust to instrumental variable analysis, controlling for bank fixed effects, alternative measures of financial inclusion, among several other robustness tests. Our results highlight that the importance of ensuring inclusive financial system is not only a development goal but also an issue that should be prioritised by banks, as such a policy drive is good for their stability.