More inclusive, more stable? The financial inclusion - stability nexus in the global financial crisis

This paper assesses the relationship between inclusion and stability in the global financial crisis based on a sample of 75 countries. The authors find that a higher level of financial inclusion has a moderating effect on the credit crunch in the crisis. However, financial inclusion itself is subject to a boom-bust cycle as stronger borrower growth in the pre-crisis period is followed by a deeper drop in borrower growth in the crisis.
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