Financial Inclusion, Growth and Inequality: A Model Application to Colombia

• Authors: Karpowicz Izabela
• Languages of publication: EN

Abstracts

EN

Financial inclusion has been one of the key pillars of Colombia’s development strategy for a number of years. Financial inclusion policies have aimed at channeling microcredit to poor, spreading formal banking system usage, fostering electronic payment acceptance, and making financial services more affordable. Using simulations from a general equilibrium model it is possible to identify the most binding financial sector frictions that preclude financial inclusion of enterprises, and study the effects on growth and inequality of efforts to remove these frictions. The study finds that lowering contraints on collateral promises higher growth while inequality is better tackled through measures that lower the financial participation cost

Keywords

EN

Financial deepening; financial inclusion; access to finance; inequality

• Publisher: Uniwersytet Warszawski. Wydział Nauk Ekonomicznych
• Journal: Journal of Banking and Financial Economics
• Year: 2016
• Issue: 2(6)
• Pages: 68-89

Dates

online

2016-06-16

Contributors

author

Karpowicz Izabela

• International Monetary Fund, United States of America

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Identifiers

ISSN

2353-6845

DOI

10.7172/2353-6845.jbfe.2016.2.4