Financial Inclusion, Growth and Inequality: A Model Application to Colombia
Electronic Access:
Free Download. Use the free Adobe Acrobat Reader to view this PDF file
Summary:
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.
Series:
Working Paper No. 2014/166
Subject:
Collateral Credit Economic sectors Financial inclusion Financial institutions Financial markets Financial sector Financial services Money
English
Publication Date:
September 12, 2014
ISBN/ISSN:
9781498344838/1018-5941
Stock No:
WPIEA2014166
Pages:
31
Please address any questions about this title to publications@imf.org